January 4, 2011
QUEBEC CITYAtrium Innovations Inc. (TSX: ATB), leading manufacturer and marketer of dietary supplements, purchased Ontario-based Seroyal International in a US$110 million cash transaction that closed Dec. 31, 2010. Seroyal markets dietary supplements in the United States and Canada via health care practitioners (HCP), and posted consolidated revenues for 2010 of approximately US$40 million. The company offers several branded product lines and also runs a continuing education program for health care practitioners.
Seroyal is one of the largest acquisitions in our short history. It will allow Atrium to surpass the important milestone of US$100 million in EBITDA. Moreover, it will provide us with a leading position in the North American HCP channel and create a significant presence in Canada when combined with our existing operations," said Pierre Fitzgibbon, president and CEO of Atrium. This acquisition adds premium, high margin and complementary brands to Atriums family of products. Within our multi-channel strategy, we envision some cross-selling opportunities with these new brands and some operating synergies."
Atrium also released financial guidance for the fourth quarter (4Q) of 2010, as well as projections for 2011. It noted 4Q10 revenues, EBITDA and EPS will be slightly lower than the comparable 2009 period, primarily due to unfavorable currency exchange rates. Looking ahead to 2011, revenues should be between US$424 million and US$432 million, with EBITDA between US$105 million and US$110 million.
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