Rexall to Buy Supplement Firm Met-Rx

A leading maker of vitamins and herbal supplements said Wednesday it will pay $78 million to acquire Met-Rx Nutrition Inc., an Irvine-based company accused of failing to disclose the health risks of testosterone boosters like those formerly used by baseball slugger Mark McGwire.

Rexall Sundown Inc. of Boca Raton, Fla., said the transaction, part of a strategy to broaden its products, is expected to boost its earnings next year. As part of the deal, expected to close in mid-January, Rexall will assume $30 million in Met-Rx debt.

Met-Rx will retain its name and operate as a Rexall subsidiary. There are no plans to eliminate any of Met-Rx’s 140 jobs in Orange County, and the payroll may even expand, said Len Moskovits, Met-Rx’s chief executive. Founder A. Scott Connelly will stay on as Met-Rx’s chairman.

In a news release, the companies said Met-Rx has been growing at a 30% annual pace and will sell $105 million worth of nutrition bars, protein powders and other products this year.

Rexall’s large sales and marketing staff will help Met-Rx grow faster, Moskovits said. The companies have complementary strengths, he said. Much of Met-Rx’s sales are through health-food stores and fitness centers, while Rexall Sundown has a greater presence in groceries and drug and discount stores.

Met-Rx says a key ingredient in its products, a protein mix it calls Metamyosyn, increases the body’s ability to build lean muscle.

It attracted more attention, however, when the Federal Trade Commission accused it of making unproven claims that products containing androstenedione, a hormone-like substance banned as a steroid by some athletic organizations, could increase muscle mass and libido with few or no side effects.

In a November settlement, Met-Rx pledged to disclose side effects of androstenedione use, such as enlarged breasts, testicle shrinkage and infertility.