New brand will benefit from Atrium's multi-channel capabilities and geographic reach
QUEBEC CITY, Dec. 15 /PRNewswire-FirstCall/ - Atrium Innovations Inc. (TSX: ATB), a recognized leading developer, manufacturer and marketer of professionally endorsed, science-based dietary supplements for the health and nutrition industry, today announced the purchase of Belgium-based Minami Nutrition, a niche brand of superior quality scientifically proven Omega-3 products primarily sold in several European countries.
Minami's product portfolio consists of sixteen Omega-3 supplements with revenues derived largely from Belgium, Holland, Ireland and the UK. Minami's products distinguish themselves through an exclusive sourcing of oil with a high level of concentration and purity and a small ecological footprint. Some competing brands may require a larger number of softgel capsules to deliver the full benefit of Omega-3 on a daily basis. In contrast, with up to 90-95% of pure Omega-3 per softgel, Minami's products require considerably fewer capsules. Based on a unique, exclusive and patented manufacturing process, the purity of Minami's Omega-3 supplements surpasses industry standards for PCBs, dioxins and heavy metals. Finally, no chemical products are used in the manufacturing process and the oil is derived from non-endangered species of fish or algae. Minami's fish oil has Eco-Management and Audit Scheme (EMAS) certification which is approved by the European Parliament.
"We seek worldwide for acquisitions with brands and products that can reinforce our commitment to innovation and superior quality products, and Minami's Omega-3 clearly stands apart in this market category," said Pierre Fitzgibbon, Atrium's President and CEO. "We focus upon and derive a large percentage of our revenues from specialty supplements, a high growth market segment of which Omega-3 is part. This new high-end brand is complementary to the wide range of Omega-3 products among our group. The objective is to leverage Atrium's multi-channel distribution and geographic capabilities to considerably increase the penetration level of the Minami brand to achieve its full potential."
Mr. Jo Wyckmans, the founder, will remain with Minami and will assist with its continued growth in Europe through Atrium's MCO Health organization. The Minami brand will be launched by Garden of Life in the spring of 2011 in the USA, to be followed by Trophic as soon as the product registration is completed in Canada. Minami has a strategic long-term Omega-3 sourcing supply agreement with KD-Pharma Bexbach GmbH for the European and North American markets.
For the past twelve months, Minami reported European revenues of approximately (euro)5 million (US$6.71 million). Under the terms of the acquisition, Atrium acquired Minami for a total cash consideration of (euro)5.5 million (US$7.38 million) before a revenue earn-out payment of up to (euro)2 million (US$2.68 million) payable at the end of 2011 if the revenue growth reaches 20%. The acquisition price EBITDA multiple before earn-out is 5.5. The acquisition is immediately accretive to earnings and was financed with available credit facilities. The transaction closed on December 14, 2010.
Atrium Innovations Inc. is a globally recognized leader in the innovation, formulation, production and commercialization of science-based and professionally endorsed dietary supplements for the health & nutrition industry. The Company focuses primarily on growing segments of the health and nutrition markets, which are benefiting from the trends towards healthy living and the ageing of the population. Atrium markets a broad portfolio of finished products through its highly specialized sales and marketing network in more than 35 countries, primarily in North America and Europe. Atrium has over 925 employees and operates seven manufacturing facilities. Additional information about Atrium is available on its website at www.atrium-innovations.com.
About Minami Nutrition
Minami Nutrition is based in Aartselaar, Belgium. Jo Wyckmans, the current CEO, founded the company in 1999. The Minami Brand is specialized in high-end Omega-3 products supported by extensive scientific research. Additional information about Minami Nutrition is available on its website at www.minami-nutrition.com.
Cautionary Note and Forward-Looking Statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable, but cautions the reader that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company. For additional information with respect to these and other factors, see the Company's quarterly and annual filings with the Canadian securities commissions. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
SOURCE ATRIUM INNOVATIONS INC.