Nutrition 21 Agrees to Buy Iceland Health
Iceland Health has exclusive U.S. rights to market and sell fish oil and omega-3 fatty acids that are manufactured by an Iceland company to pharmaceutical standards utilizing a patented distillation process.
16/08/06 Nutrition 21, Inc has signed an agreement to acquire Iceland Health, Inc. Iceland Health is a privately held company headquartered in the U.S. that has developed a leading brand position in the Omega-3 market, the fastest growing category in the supplement industry. Iceland Health has exclusive U.S. rights to market and sell fish oil and omega-3 fatty acids that are manufactured by an Iceland company to pharmaceutical standards utilizing a patented distillation process. It markets its products through direct response channels including TV infomercials, call centers and Internet e-commerce. Iceland Health's unaudited revenues for the 12 months ended June 30, 2006 were approximately $26 million.
Closing under the agreement is subject to satisfactory due diligence and standard terms and conditions. According to the Nutrition Business Journal, the total U.S. retail sales of fish oils/Omega-3s for all distribution channels grew from $187 million in sales in 2003 to $261 million in sales in 2004. According to IRI data for food, drug and mass retailers, sales of Omega-3 fatty acids grew 106 percent for the 52 weeks ending May 21, 2006.
"The proposed acquisition of the Iceland Health business would build on our strategy to leverage our biosciences roots and to continue to develop and market proprietary and clinically substantiated nutraceuticals that address significant health care concerns," said Paul Intlekofer, president and CEO of Nutrition 21. "The American Heart Association recommends Omega-3 fatty acids for numerous heart health benefits. With the volume of studies behind fish oil and Omega-3 fatty acids, the science is very strong."
"Over the last year Nutrition 21 has transitioned from an ingredients model to a supplier of finished products. The combined business of Nutrition 21 and Iceland Health would offer a broad line of proprietary products shown to be effective in the areas of insulin resistance, obesity, diabetes, cardiovascular disease, depression and joint health," added Intlekofer. "We have a talented retail sales force and established relationships with the major retailers in the U.S. and could look forward to taking the Iceland Health franchise into retail. In turn, we are excited about further supporting our Chromax chromium picolinate marketing initiatives with TV advertising and other direct marketing."
Mark Stenberg, CEO of Iceland Health, added, "We are impressed by the science and market opportunity for Nutrition 21's Chromax, chromium picolinate and Diachrome. We have experienced significant growth in our business over the last several years and we see a great fit in combining our expertise and products with those of Nutrition 21 to build a formidable consumer health product's company."
