EAS sale confirmed
confirmed today that it is actively looking for a buyer for the
nutritional products firm, according to the Rocky Mountain News.
NutraIngredientsUSA yesterday reported that a New York Post story was claiming that EAS, the nutritional food and supplements maker formally known as Experimental & Applied Sciences, was up for sale with a price tag of as much as $400 million.
Today's edition of the Rocky Mountain News cites John Higgins, spokesperson for North Castle Partners, the private equity firm that bought EAS in 1999, saying that the unnamed sources quoted in the Post were "essentially correct".
The publication then went on to cite a statement from EAS, intimating that business is carrying on as usual.
"Since we were purchased by North Castle Partners in 1999, many companies have expressed interest in EAS. The ongoing interest from both strategic and financial investors affirms the attractiveness of the sports and nutritional supplement segment of the health and wellness category in general and reinforces the success we have had in developing strong brands and reaching new consumers," the statement said.
"And while we always keep an eye on the sales process, our management team and 250 employees remain focused on fulfilling our day-to-day mission: building on the strength of our Myoplex and AdvantEdge brands. We have big plans for the rest of this year and 2005, and look forward to continued success."
EAS is a leading producer of diet bars, protein shakes and energy supplements, including the brands EAS HP, Myoplex, AdvantEdge and Pirahna.
The Post wrote that the Colerado based company has hired UBS to handle the sale and that a round of bids is due to take place later this week.
Possible bidders for the firm are suggested to include food companies such as Nestlé, Kellogg, PepsiCo and Kraft Foods, as well as candy makers like Wm. Wrigley Jr., Hershey Foods and Mars. And a small group of buyout firms, including Blackstone Group, Ripplewood Holdings, Harvest Partners and AEA Investors, are also expected to show up at the bidding.
North Castle is said to want to complete a deal before the end of the year. EAS has seen its sales and EBITDA more than triple in the last five years, and the company is expected to generate $340 million in sales and roughly $38 million to $40 million in EBITDA this year.
In March 2003, EAS turned its back on the epherda-based product sector by launching a new fat-burning supplement called ThermoDynamX, in the light of consumer concern, and before the FDA officially banned ephedra in April last year.
