Source: LOHAS Weekly Newsletter
Published: Thursday, October 01, 1998

PORTLAND, ME—Natural health care-products maker Natural Health Trends Corp. (NHTC), based here, on Sept. 14 signed a letter of intent to acquire privately held Longmont, CO-based dietary-supplements direct marketer Kaire Intl. Inc. for terms undisclosed. The agreement is subject to due diligence and the execution of a definitive agreement. NHTC did not predict a closing date for the deal.

“Kaire’s product line and distribution system provide us with an outstanding opportunity to realize our goal of becoming a leader in the development and distribution of natural care products, and it gives us an additional channel of distribution for our Natural Relief 1222 topical arthritis pain relief product,” said Joe Grace, president of NHTC, in a statement.

Kaire, which had FY96 sales of $51.5 million, saw its sales drop to $35 million for FY97. The company also filed for a $6.9 million IPO earlier this year; the underwriter was May Davis Group. Kaire distributes more than 50 natural health and beauty care products through a 60,000-person direct sales network.

NHTC recorded $832,831 in sales and net income of $86,623 for the first six months of 1998. NHTC in August completed the sale of its three Florida vocational schools to Florida College of Natural Health Inc. (FCNH) for $1.8 million. Also, FCNH assumed NHTC’s liabilities in connection with the schools plus an additional $250,000 in liabilities, and directors Neil R. Heller, Elizabeth S. Heller and Arthur Keiser resigned. The company posted an FY97 net loss of $7.73 million or $17.79/share and an FY96 loss of $889,538 or $3.17/share.

In July 1997 NHTC completed its acquisition of Global Health Alternatives, whose flagship product is Natural Relief 1222 for arthritis relief.