NBTY Buys The Netherlands' Natural Products Chain

NBTY Inc. (NasdaqNM: NBTY), via its subsidiary Holland & Barrett Europe, has signed a letter of intent to buy the De Tuinen chain of health food stores for approximately $16.6 million. De Tuinen, which has been part of the Ahold (NYSE: AHO) group of companies since 1991, has total revenue of approximately $30.2 million, according to a Dec. 11 announcement. The De Tuinen chain is comprised of 65 natural products stores in The Netherlands.

NBTY expects to complete the transaction during 1Q03.

"We are excited by this acquisition which gives us an entree into the Netherlands, which will supplement our Holland & Barrett European operations. The De Tuinen stores offer a wide assortment of dietary supplements, gift and natural beauty care items that will complement our broad product array,” states Scott Rudolph, NBTY chairman and CEO, in the company announcement.

The De Tuinen divestment fits with Ahold's strategy to focus on its core businesses, according to a Dec. 11 article at FoodNavigator.com. Ahold says De Tuinen would benefit from an organization, such as NBTY, that specializes in natural products and dietary supplements.