Schiff Buys Portion of Ganeden
The probiotics category is growing over 20% on an annualized basis, according to Nutrition Business Journal. BC30 has over 95 U.S. and foreign patents and patent applications.
Tarang Amin, president and chief executive officer of Schiff Nutrition, stated, “Our focus is to deliver shareholder value by building premium brands and leading innovation. By acquiring the rights to the leading probiotics technology, we have entered a new, rapidly expanding category that creates accretive growth opportunities.
“We believe BC30 has many inherent physical properties that make it superior to other traditional probiotic organisms. We intend to leverage this enviable technology and grow the Sustenex and Digestive Advantage lines. In addition, we plan to capitalize on Schiff’s brand marketing know-how, provide incremental marketing investment and use our well established customer relationships to increase distribution,” Amin concluded.
The assets and brands acquired from Ganeden generated net revenue of approximately $17 million for the year ended December 31, 2010. This transaction is expected to increase Schiff’s net revenues and, excluding one-time costs, be accretive to earnings for its fiscal year ended May 31, 2012. Management intends to address the impact of the acquisition on the company’s financial position when it announces its fourth quarter and fiscal 2011 financial results scheduled for July.
From the June 2, 2011, Prepared Foods' Daily News.