05 July 2007
5 July 2007
ACQUISITION OF DIRECT TO CONSUMER WEBSITE & LICENSING AGREEMENT WITH LEADING
NUTRITION EXPERT PATRICK HOLFORD
NeutraHealth plc, one of the leading consolidators in the vitamin and
nutraceutical industry, today announces its second acquisition for the year and
a licensing agreement with the well known and highly regarded nutrition expert
and best selling author Patrick Holford.
NeutraHealth has acquired the entire issued share capital of Health Products for
Life Limited ("HPL"), a vitamins and supplements website endorsed by Patrick
Holford that sells product direct to consumers. This acquisition sees
NeutraHealth establish it's first offering in the direct to consumer sales
channel. HPL complements the portfolio of companies that NeutraHealth already
operates in the practitioner, multiple retailer and independent retailer
channels within the sector.
The company believes that the website portal can be developed to significantly
increase sales and provide a solid platform for roll out of mail order
The total consideration for HPL of #464,000, net of cash and including deferred
consideration, represents an acquisition multiple of 7.7 x PBIT for the year
ending 30 June 2007 (unaudited).
The 10 year agreement will see BioCare, the leading practitioner brand of
supplements and a 100% owned NeutraHealth subsidiary, develop and launch a range
of up to 20 BioCare / Patrick Holford co-branded products by the end of 2007.
Patrick Holford will be appointed Head of Science and Education for Biocare, and
will develop the products with the BioCare technical team. These products will
be sold through practitioners, independent health food stores and online through
the BioCare and Health Products for Life websites.
Mr Holford, one of the leading nutrition experts in the world, has built a
strong brand and reputation through his work on improving health through
nutrition. He is a best selling author with more than 1,500,000 copies sold
worldwide and is a leading spokesman on nutritional issues. His advice and
opinion frequently appears in the national press, on TV and on radio and he is
founder of the Institute for Optimum Nutrition, the largest nutritional training
school in the UK.
NeutraHealth interims will be published on 26th July. Development of the new
brands is progressing as expected, with TravelGuard having been listed
nationwide for the important summer holiday season and with the Champneys retail
listings agreed for later in the year.
Michael Toxvaerd, NeutraHealth Chief Executive, commented:
"I am excited about the opportunities that these two developments bring to the
Group. To get an established direct to consumer sales channel in place that we
can scale up exemplifies our desire to make strategic acquisitions that
complement our existing group.
Patrick Holford is a figurehead and leading spokesman for the industry and by
bringing together BioCare, as the leading practitioner brand, and Patrick as a
respected nutrition expert, we are creating an extremely powerful force in our
sector and we expect to support the ongoing roll out of Patrick Holford products
on an international scale.
Both these developments are yet another example of NeutraHealth continuously
delivering on its stated strategy and ensuring the building blocks are in place
for the Group to roll out products through all its key channels to market."
* Initial consideration of #264,000 payable in cash for 100% of share
capital of Health Products for Life Limited net of cash and debt
* Deferred consideration of #200,000 payable on 4th July 2008
Summary Financials (2007 unaudited) for Health Products for Life
* PBIT for year ended 30 June 2007 : #60,000 (2006 : #60,000)
* Turnover for year ended 30 June 2007: #369,000 (2006 : #385,000)
* Net Assets at 30 June 2007: #109,000 (2006 : #58,000)
For more information:
Michael Toxvaerd, Chief Executive 07730 581 584
Robin Hilton, Finance Director 07738 018 411
KBC Peel Hunt
Matt Goode 020 7418 8900
Pelham Public Relations
Gavin Davis 020 7743 6677
Kate Catchpole 020 7743 6678
Further information for investors is available on the Company's website at
NeutraHealth was floated on AIM in February 2005 with the strategy of
consolidating the fragmented Vitamins, Minerals and Supplements sector of the
growing nutraceutical market. The company is focused on building a group of
companies within the nutraceutical market which will deliver growth through
organic expansion and through strategic acquisitions.
The company made its first acquisition, BioCare, in August 2005 for #16.1m.
Since then it has delivered the following:
* Second acquisition (#0.5m) of Nutrigold, a producer of nutraceutical
products and services for the practitioner market. The founder, Andy Wren, has
remained as managing director with an earn out incentive up to #0.3m
* Agreement reached with Boots the Chemist plc, Waitrose, Harrods,
Selfridges, Holland & Barrett, and The Nutri Centre (51% owned by Tesco) to
stock the TravelGuard range, NeutraHealth's first retail brand.
* Signing of an exclusive licensing agreement with the Champneys Spa
Group to develop a new health and beauty range of vitamins and supplements sold
through major retail outlets under the Champneys name.
* Third acquisition (#4.0m) Brunel Healthcare Limited, an established
supplier of nutraceutical products and over the counter medicines sold by major
retailers across the UK.
* Signed three year agreement with the UKs leading high street retailer
of vitamins, minerals and supplements to continue to supply products under
private label until at least August 2010, contractually underpinning 20% of
current group sales
* Fourth acquisition (#0.4m) Health Products for Life, a direct to
* Signing of licensing agreement with leading nutrition expert Patrick
This information is provided by RNS
The company news service from the London Stock Exchange