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Numico to buy $1.8B Rexall
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May 1, 2000: 4:21 a.m. ET
Dutch food firm to swallow Florida-based vitamin maker
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LONDON (CNNfn) - Dutch-based Royal Numico, a specialist provider of nutritional health products, agreed on Monday to pay $1.8 billion in cash to acquire U.S. vitamin maker Rexall Sundown.
The deal is Numico's latest foray into the U.S. market following last year's $2.5 billion acquisition of GNC Nutrition, which also specializes in health-food products.
Numico is already one of the world's largest nutritional food players, employing 27,000 staff in 110 countries. It has agreed to pay $24 a share for Rexall (RXSD: Research, Estimates), a 25 percent premium to the Florida-based firm's Friday close. The offer, accepted by Rexall's board, includes debt of $114 million.
 Rexall's 800-product portfolio is sold mainly through discount retailers such as Wal-Mart (WMT: Research, Estimates), and the company reported net earnings of $60.1 million last year on revenue of $595.7 million.
Numico said the deal would enhance earnings from year one, generate initial cost savings of  25 million and boost its pro-forma 2000 revenue to 4.5 billion ($4.10 billion).
The company posted a 24 percent rise in 1999 net earnings to 191 million, while revenue jumped 45.8 percent to 2.3 billion.
Numico shares were 3 percent ahead at 42.14 in mid-morning trade in Amsterdam Monday.
The deal is the second raid by a Dutch food firm on the U.S. market this year, following the $3.6 billion purchase of U.S. Foodservice by Royal Ahold in March. 
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