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news.Nutritional supplements maker NBTY is set to acquire Zila Nutraceuticals from healthcare group Zila, in a $40 million deal.
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NBTY will purchase the stock of Zila Nutraceuticals, which manufacturers and markets the Ester-C nutritional supplement brand, for approximately $40 million in cash, including up to a $3 million contingent payment which is based upon EBITDA performance.
NBTY hopes the addition of Zila Nutraceuticals, which had $18 million in net revenue for the nine months ended April 30, 2006, will help boost its presence in key markets. Following the sale Zila hopes to focus its attentions on its cancer treatments.
“Ester-C is known throughout multiple markets including health food stores and mass market retailers and its acquisition represents an opportunity for NBTY to enhance its presence in key markets,” said Scott Rudolph, NBTY chairman and CEO.
The transaction, which is subject to the approval of Zila shareholders, is expected to close by October 2006.