Florida Sport next to be swept up by Bio-One
supplements company Bio-One, has acquired the assets of Florida
Sport Nutrition Distributors.
Purchase terms for the company, a wholesale distributor of nationally branded nutritional supplements, included a cash payment of $175,000 and notes totaling $175,000.
The acquisition of Florida Sport, which made approximately $2 million in sales last year, continues Bio-One's aggressive expansion program.
"This is our sixth acquisition since September 2003," said Armand Dauplaise, the president and CEO of Bio-One. "We are pursuing additional synergistic candidates in North America and China that meet our criteria."
ANI hopes the acquisition of Florida Sports will strengthen its south east regional distribution capabilities by providing them with a second distribution center.
"ANI represents approximately 25 of North America's leading supplements manufacturers," said Ismael Gonzalez, the distribution president and CEO of ANI. "Our distribution channels include retailers representing independents, large and small chain vitamin outlets, health clubs and convenience stores throughout the southeast."
Earlier this month Bio-One made its third acquisition in China buying a 51 percent stake in a Chinese herbal medicine firm in the Hebei Province.
Bio-One is striving to become a leading manufacturer and marketer of brand name nutritional supplements sold through multiple distribution pipelines -a strategy dependent on successfully acquiring manufacturing, marketing and distribution companies currently engaged in various aspects of this industry.
The supplements industry is a highly fragmented sector and according to Hawks Associates less than 20 companies realize annual revenues in excess of $100 million. Over 5,000 supplement companies are relatively small first generation family businesses with annual sales of less than $25 million. However, many of these businesses are highly profitable with EBITDA in the 15 per cent to 20 per cent range of sales. These are the businesses that Bio-One has targeted for acquisition.
Industry sources pitched the US retail market for vitamins, minerals and other supplements, including sports nutrition products and nutritionally enhanced foods and diet products, at about $58 billion in 2003. Of this total, supplement sales accounted for approximately $20 billion.
Many analysts believe this consumer-directed health care expenditure will grow even faster than the 8 per cent annual growth predicted on average for the heath care industry overall, said Hawk Associates.
Growth for companies targeting this industry reflects the consumer's growing desire for 'self-care', as well as the expanding 'third age' generation.
According to a recent survey from the Consumer Health Care Products Association 73 per cent of respondents said they would rather treat themselves at home than see a doctor. In addition, it is estimated that the population of those 65 years and older will double to nearly 25 per cent of the US population by the year 2030, opening up strong opportunities for industry players.
