Feb. 4 - NeutraHealth is pleased to announce the acquisition of the Gerard House and Galloway brands, including the acquisition of seven product licenses, from Potters Limited. The purchase price of £400,000 will be funded through existing cash resources and will include all stock and trading relationships. Total sales of both brands for the year ended 31 December 2007 were £270,000.
Gerard House : The Gerard House brand is sold through leading retailers across the UK. The product range includes a number of licensed herbal products including Somnus, and Slimmers Aid in addition to essential oil extracts such as Lavender Oil and Tea Tree Oil.
Galloways : The herbal based Galloway Cough Syrup GSL licensed medicine is currently sold exclusively through leading UK pharmacies.
These brands have been purchased by NeutraHealth subsidiary Brunel Healthcare Limited (“Brunel”), which supplies major high street retailers with both private label and branded vitamins & supplements and over the counter medicines. The Board believes the acquisitions are complementary to the existing group business and expects to exploit synergies through the use of Brunel’s existing relationships, thus increasing distribution and furthering the awareness of both brands.
Herbal product licenses will form an important part of the business going forward as it is anticipated that full implementation of the EU Traditional Herbal Medicines Directive in 2011 will restrict sales of unlicensed herbal products.
Notice of results
The Company expects to announce its results for the year ended 31 December 2007 on 5th March 2008. The Company continues to make strong progress and expects to report results in line with market expectations.
Michael Toxvaerd, NeutraHealth Chief Executive, commented:
“This purchase of brands and licenses is a good move forward for Brunel, allowing us to build on their very successful year in 2007 that saw the original vendors secure their full earn out.
Sales remain strong across the group despite the current economic conditions, and we expect the acquisition of licensed products to further strengthen Brunel’s position as a leading supplier to major retailers across the UK.”
Notes:
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, and has made three subsequent acquisitions. Recent events include:
January 2007
·Acquisition for £4.0m of Brunel Healthcare Limited, an established supplier of nutraceutical products and over the counter medicines sold by major retailers across the UK.
April 2007
·Signed three year agreement with the UK’s 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
July 2007
·Acquisition of Health Products for Life for £0.4m, a direct to consumer website
·Signing of licensing agreement with leading nutrition expert Patrick Holford
August 2007
·Net £5.3 million investment in 20% of NeutraHealth by Elder Pharmaceuticals Limited of India through issue of shares at 16p
·Investment made at a 36% premium to mid-market price on day of announcement
·Funds raised for future acquisitions, and opportunities for distribution and manufacturing between businesses