Twinlab To Sell Arizona Facility to Anabolic Labs

HAUPPAUGE, N.Y.--Twinlab Corp. (NASDAQ:TWLB) reported in early March that it planned to close or sell its Health Factors International (HFI) plant based in Tempe, Ariz., while spreading out HFI's production responsibilities to Twinlab's Utah- and New York-based facilities. In a statement released April 1, Twinlab (www.twinlab.com) reported that it signed a letter of intent to sell its Arizona-based manufacturing facility to Irvine, Calif.-based Anabolic Laboratories (www.anaboliclabs.com). The transaction is subject to completion of due diligence and a definitive agreement between the two companies.

"Basically, the plan behind this acquisition is to give us increased capacity," stated Gary Korngold, vice president of business development at Anabolic. He added that benefits in choosing this facility were the Southwest location and the business-friendly environment in Arizona. The company is planning to close the transaction by May 1, depending on due diligence.

This sale is part of Twinlab's strategic initiatives to streamline operations, increase productivity and become more cost-effective. Reportedly, selling the facility eliminated approximately 12 percent (or around 100 people) from Twinlab's total workforce.

Terms of the agreement were not disclosed.