Weider Nutrition Sells Venice Beach Apparel Business AssetsDate: 30.04.2003 Posted by: Anabolic Info Team United States
Weider Nutrition International, Inc. (NYSE:WNI) today announced that its Haleko business unit entered into an agreement to sell substantially all of its assets relating to its Germany-based Venice Beach(R) apparel brand to Hucke AG, a German apparel company. The agreement provides for the cash payment of approximately $2.2 million for the intellectual property assets relating to Venice Beach. In addition, the agreement includes the sale of Venice Beach receivables, inventories and certain fixed assets and the assumption by Hucke of approximately 47 Venice Beach employees. The final sales price for the Venice Beach receivables, inventories and certain fixed assets will be based on a post-closing review of the balances of the respective assets as of April 30, 2003.
Bruce Wood, president and CEO, stated, "This sale is consistent with our long-term goal of enhancing our leadership position in the nutritional supplements category. Weider is continuing to concentrate our efforts on building our core nutrition brands and improving profitability within our business units. The sale of Venice Beach assets also enables our Haleko business unit to focus on strengthening its primary Multipower(R) and Multaben(TM) nutrition brands."
About Weider Nutrition
Weider Nutrition International, Inc. develops, manufactures, markets and sells branded and private label vitamins, nutritional supplements and sports nutrition products, in the United States and throughout the world. To learn more about Weider, please visit the website www.weider.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions, current expectations, estimates, and projections. These statements are subject to risks and uncertainties, certain of which are beyond the company's ability to control or predict, and, therefore, actual results may differ materially. Weider Nutrition disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
Important factors that may cause these forward looking statements to be false include, but are not limited to: the inability to successfully implement marketing and spending programs behind our Move Free(R) brand and other branded new products, the inability to achieve cost savings and operational efficiencies, the inability to increase operating margins and increase revenues, dependence on individual products, the inability to successfully restructure the Haleko business unit and make it profitable, dependence on individual customers, the inability to successfully utilize available cash resulting from suspension of the Company's quarterly dividend, the impact of competitive products and pricing (including private label), market and industry conditions (including pricing, demand for products, level of trade inventories and raw materials availability and pricing), the success of product development and new product introductions into the marketplace, changes in laws and regulations, litigation and government regulatory action, lack of available product liability insurance for products containing ephedra, uncertainty of market acceptance of new products, adverse publicity regarding the consumption of nutritional supplements, changes in accounting standards, and other factors indicated from time to time in the company's SEC reports, copies of which are available upon request from the company's investor relations department or may be obtained at the SEC's website (www.sec.gov).
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