Vitamin Firms’ Merger Nears Completion
Two of Southern California’s major private-label vitamin makers have agreed to merge to form a $100-million-a-year vitamin and nutritional supplements company with nationwide distribution.
In a deal expected to be completed later this month, P. Leiner Nutritional Products in Torrance will buy Vita-Fresh Vitamin Co. of Garden Grove from the firm’s privately owned parent, Vital Industries. The price of the all-cash deal was not disclosed.
Officials of both companies said the 250 workers now employed by Vita-Fresh will not be affected by the transaction.
“We’re excited,” said Jim H. Martin, president of Vita-Fresh. “The marriage fits very well. It’s a very positive action for the industry.”
Vita-Fresh operates a 137,000-square-foot manufacturing and distribution facility in Garden Grove and a 30,000-square-foot distribution center in Upstate New York.
Enters Children’s Market
P. Leiner’s manufacturing and distribution outlet in Torrance employs 500. The company, which reported $65 million in sales and a $3.5-million net profit for 1987, also has sales offices in Cleveland, Dallas and Greensboro, N.C.
Leiner, which is traded on the American Stock Exchange, closed Friday at $8.625 per share, up 87 1/2 cents for the day on news of the acquisition.
In addition to manufacturing vitamins and supplements for sale under other labels, each company has its own branded items. Leiner products sell under the “Your Life” label, and Vita-Fresh markets the “Vita-Fresh” brand.
The Garden Grove company additionally has entered the lucrative children’s vitamin market with the “Scooby-Doo” brand, licensing the cartoon character name from Hanna-Barbera Productions Inc.
Martin said Vita-Fresh, which supplies private-label vitamins for supermarket chains, grocery wholesalers and the military, also has a drug-manufacturing license.
Vita-Fresh posted $36 million in sales in the last 12 months. Martin would not disclose earnings.
Michael Leiner, chairman and chief executive of P. Leiner Nutritional, said the combined companies will distribute vitamins and supplements to “22 of the nation’s largest drugstore chains, 19 of the 25 largest supermarket chains and 15 of the 25 largest discount chains.”
