So far, Twinlab has only signed the letter, so details of the proposed deal were not available at press time. The transaction's closing is subject to completion of due diligence and execution of a definitive agreement.
"With the downturn in the industry, this asset is a specialty division that we are disposing of," Bill Bizzardi, a Twinlab spokesman, tells GlobeSt.com. "We'll continue to focus on our core competencies, the branded products."
With the factory's sale, Twinlab hopes to continue increasing productivity and become more cost effective. Much of the production performed at the plant will now shift to facilities in New York and Utah. A portion of the work will be outsourced. The Tempe sale will result in a 12% reduction in Twinlab's total workforce.
The firm distributes its brand name lines of nutritional supplements including vitamins, minerals, herbs and sports nutrition products through big box retailers such as Wal-Mart and Kmart and various large retail pharmacies. The letter comes a week after Twinlab released its fourth quarter 2001 and year-end results, posting net sales declines in both categories. For the fourth quarter, net sales dropped to $43 million from $57.6 million in fourth quarter 2000. Last year's net sales came in at $199.8 million, down $42.5 million for fiscal 2000.
Founded in 1925, Anabolic Laboratories also is a manufacturer of nutritional supplements to key companies serving the natural foods industry. An FDA-registered pharmaceutical manufacturer, Anabolic provides contract manufacturing and private label services.
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