NBTY acquires Balance Bar Company

NBTY Inc. has announced the acquisition of Balance Bar Company from Brynwood Partners, its private equity owner. Details of the deal were not announced.

"Nutritional bars are a $1 billion industry in the U.S. that we expect to continue to flourish as more and more people need healthy nutrition options on the go," said Jeff Nagel, NBTY's CEO.  Nagel went on to say that Balance Bar is “a strong brand and is a perfect strategic fit with our existing portfolio.”

NBTY is a leader in vitamins and other dietary supplements and sports nutrition products.  In mid October the company released preliminary third quarter financial figures, saying sales would range from $3.05 billion to $3.07 billion and consolidated EBITDA for the fiscal year ended September 30, 2012 is forecast to range between $556 million and $566 million. These figures compared with a final sales figure in 2011 of $2.96 billion.

The company expected capital expenditures for the year to range between $90 million and $95 million and cash and cash equivalents are estimated to be between $313 million and $317 million. Debt was expected to stand at  $2.16 billion.  These preliminary figures have not been audited, the company said. The final report is expected to be filed by Nov. 30.

Balance Bar was founded in 1992 and is one of the leading brands in the high growth nutritional bar category. Balance Bar enjoys a strong and loyal customer following and has some of the most recognizable bars in the industry. It sells four unique product lines (Original, Gold, Bare and Minis), which offer great taste and balanced nutrition. The company also recently launched a dark chocolate line using cocoa sourced from Rainforest Alliance Certified farms.

Bar added to broad product line

NBTY manufactures, markets and distributes a broad line of high quality vitamins and supplements and is also a leader in the sports nutrition category, currently offering the popular MET-Rx, Pure Protein and Good n' Natural brands.

In addition the preliminary financial data,  in early October the company announced an amendment to its credit agreement. The amendment will allow NBTY’s parent company to issue and sell contingent cash pay senior notes in a private placement, in an amount currently contemplated to be approximately $500 million.

The debt on NBTY’s balance sheet rose significantly in 2011 with the completion the acquisition by Carlyle.  That was the most recent in a series of strategic acquisitions, according to the company’s 2011 annual report.  NBTY, first as a standalone company and now under Carlyle, has acquired more than 30 companies in or businesses engaged in the manufacturing, retail and direct response sale of nutritional supplements.