Dutch Nutrition Company To Purchase GNC

Royal Numico N.V. (Zoetermeer, the Netherlands), a Dutch manufacturer and marketer of specialized nutrition products, has signed a definitive merger agreement to purchase General Nutrition Companies Inc. (GNC; Pittsburgh), a manufacturer and retailer of nutritional supplements, for $1.75 billion. The deal will create the largest company in the world devoted exclusively to nutrition, with pro forma sales of approximately US$3.0 billion and nearly 27,000 employees nationwide.

Under the terms of the agreement, Numico will make a $25-per-share cash tender offer for all of GNC's approximately 75 million outstanding shares and options, and will assume roughly $760 million in debt. Both companies will retain their own names, and neither expects any jobs losses as a result of the deal. The companies plan to jointly market Numico products, including nutritional supplements for athletes and heart patients.

According to GNC President and CEO Bill Watts, GNC will expand its Greenville, SC manufacturing plant to help meet an anticipated boost in sales because of the deal. Watts also said that the expansion would likely create new jobs in the area.

Royal Numico focuses on the development, manufacture, and sales of specialized nutrition products.

GNC is a specialty retailer of vitamin and mineral supplements, sports nutrition, and herbal products, and is also a provider of personal care, fitness, and other health related products. The compnay's products are sold through a network of 4,203 retail stores.

For more information, call Edwin Kozlowski of GNC at 412-288-4661, or e-mail ed-kozlowski@gnc-hq.com.