Acquisition provides Atrium with a complementary platform in the Canadian Market
QUEBEC CITY, March 18 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB), a recognized leading developer, manufacturer and marketer of professionally endorsed, science-based products for the health and nutrition industry, today announced the purchase of the assets of Trophic Canada, a leading manufacturer and distributor of vitamins, minerals and herbal supplements in the Canadian Health Food Store (HFS) market.
Trophic's two brands, Trophic and Wild Rose, comprising 150 products, are sold in over 900 specialized health food stores. The Company was founded in 1967 and is well known for its superior quality ingredients, formulations, rigorous testing and good manufacturing practices. Over the years, Trophic's brands have gained a solid reputation within the Health Food Store channel in the Canadian natural health industry. The annualized revenues of Trophic are approximately US$7.5 million.
"The acquisition of Trophic will provide Atrium with a stronger and complementary foothold and greater visibility in the Canadian market," said Pierre Fitzgibbon, Atrium's President and CEO. "Trophic's respected brands are supported by a well established access to the Health Food Store channel. The two brands' high quality products, approach to science and market positioning are a perfect fit with Atrium's DNA. We see considerable potential to grow Trophic and leverage its distribution strength by adding complementary products and by gaining direct access to the specialty retailers in the Canadian market. As we are a relatively small player in the Canadian market, this transaction clearly signals our accelerating emphasis on growing Atrium in its multi-channel strategy and our aim of assuming a major role in our domestic market."
Under the terms of the transaction, Atrium acquired the assets of Trophic for a total cash consideration of approximately US$11 million without any forward purchase price adjustments. The acquisition is immediately accretive to earnings without factoring future revenues and operating synergies. The transaction was completed with an effective date of March 17, 2010.
Founded in 1967, Trophic is a leading Canadian manufacturer and distributor of vitamins, minerals, and herbal supplements in the Canadian health food store market. Trophic sells 150 products under the Trophic and Wild Rose brands, including those in the following product categories: amino acids, antioxidants, children's products, dietary and digestives aids, energizers, essential fatty acids, eye formulas, food supplements, garlic products, herbal products, lipotropic factors, medicinal mushrooms, minerals, phytoplankton, soy lecithin, and vitamins.
Trophic's head office, laboratories and manufacturing facility are located in Penticton, British Columbia and it operates a warehouse in Toronto, Ontario. A large portion of Trophic products are manufactured in its GMP compliant plant. The Company services directly its specialized health food store customers. The company has 35 employees.
Atrium Innovations Inc. is a globally recognized leader in the innovation, formulation, production and commercialization of science-based and professionally endorsed products for the health & nutrition industry. The Company focuses primarily on growing segments of the health and nutrition markets which are benefiting from the trends towards healthy living and the ageing of the population. Atrium markets a broad portfolio of finished products through its highly specialized sales and marketing network in more than 35 countries, primarily in North America and Europe. Atrium has over 925 employees and operates eight manufacturing facilities. Additional information about Atrium is available on its website at www.atrium-innovations.com.
Conference Call and Webcast
Atrium will hold a conference call and webcast to discuss the acquisition of Trophic Canada and Atrium's current state of business on March 18th at 8:30 am Eastern Time. Participants may access the call by using the following numbers: 888-231-8191, 514-807-9895 or 647-427-7450. A live webcast is also available via the Company's website at www.atrium-innovations.com in the Investors section. A replay of the webcast will also be available on our website for a period of 30 days.
Cautionary Note and Forward-Looking Statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable, but cautions the reader that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company. For additional information with respect to these and other factors, see the Company's quarterly and annual filings with the Canadian securities commissions. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
SOURCE Atrium Innovations Inc.
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