Abbott Labs to purchase EAS today?
the Colarado-based nutritional products firm EAS, in a cash
purchase worth between $300 million and $350 million, according to
an article yesterday in the New York Post.
The pharmaceutical giant is finalizing an agreement to purchase the nutritional food and supplements maker formally known as Experimental & Applied Sciences, reported the Post, adding that the contract could be signed as early as today.
NutraIngredientsUSA reported back in August that the company wasup for sale with a price tag of as much as $400 million.
The Rocky Mountain News had at the time cited a statement from EAS, saying: "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".
"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 company 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.
