MM2 Group makes next nutraceutical acquision
the nutraceutical area in four months, of New York-based
supplements developer and distributor Genotec Nutraceuticals.
Expected to close in May, the Genotec deal follows MM2's purchase of Epic Nutrition, (the maker and distributor of strength and performance supplement 5-Tetra) in December 2005.
MM2 CEO Mark Meller has made it clear that his company is on the lookout for more small companies in the field to acquire over the next year. "[We are] excited at the prospect of building a very large company," he said.
Genotec is to become a wholly-owned subsidiary of MM2. No other terms, including financials, have been disclosed, but company president George Kontonatas said that it will enable the company to grow and "assume a more significant role in the expanding natural products industry".
Specifically, it will enable Genotec to bring to market a number of new products it has developed. It is expected that some of these will fall into the eye health and weight management categories.
VP of research and development Dr Joseph Freedman revealed that amongst the first will be a gum aimed at helping people to resist sweet cravings by taking away their ability to taste sweets for half an hour.
Genotec's existing range of products includes Cata-Vita, a dietary supplement for the prevention of cataracts and macular degeneration.
According to Meller, the fragmented nature of the US nutraceuticals market makes for rich-pickings for those on the acquisition trail.
"There are hundreds of small companies which have good products but inadequate distribution and/or financing," he said.
Euromonitor International estimated the US retail market for dietary supplements to be worth $8.3bn in 2005, growth of six percent over 2004.
This growth story represents a recovery of the market, which dipped from $6.43 billion in 1999 to $5.99 billion in 2001, corresponding with the general economic downturn.
