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Neutrahealth plc acquires AIM quoted £13m turnover fast growing Brunel Healthcare, a leading supplier of vitamin and mineral supplements to major UK retailers including Alliance Boots. Amies International assisted Brunel Healthcare.

AFX News - 24th January 2007

NeutraHealth buys Brunel Healthcare for up to 6.86 mln stg including debt

LONDON (AFX) - NeutraHealth PLC said it has bought Brunel Healthcare Ltd, for up to 6.86 mln stg including debt and pay outs, and at the same time gave a positive outlook for 2007.

NeutraHealth will pay an initial 4 mln stg for Brunel through an increased debt facility, and will take on Brunel's existing debt of 0.96 mln stg. The vendors may also receive up to 1.9 mln stg under earn-out conditions,NeutraHealth said.

Brunel, which distributes vitamins, supplements and over-the-countermedicines, reported pretax profit of 0.48 mln stg on sales of 14 mln stg for theyear ended Dec 31 2006.

NeutraHealth chairman Martin Gatto added: "We are delivering our strategy ofgrowing existing businesses and driving future industry consolidation. Theprospects for growth in 2007 look good and I am optimistic about the yearahead."

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Decision News Media - 25th January 2007

NeutraHealth buys Brunel, consolidates industry presence

By Jess Hallliday

NeutraHealth has taken the next step in its bid to establish a solid and unified presence in the nutraceuticals industry with the acquisition of distributor Brunel Healthcare for £4m.

NeutraHealth started trading shares on AIM in early 2005 with the aim of acquiring growing companies in the fragmented nutraceutical sector. Its first two acquisitions - of Biocare and Nutrigold - have provided it with product to sell.

This latest step takes it into a different but synergistic sector of the marketplace, expanding its channels for delivering its branded products to multiple retailers.

"Further group synergies such as supply chain optimisation, the sharing of technical expertise and the combined promises to create a very solid platform for growth in 2007 and beyond," it said.

Brunel, which had a turnover of 14m and EBITDA of 728,000 in 2006, distributes private label and branded vitamins, supplements and over-the-counter medicines to major retailers in the UK, including supermarkets Tesco and Waitrose, high street chemists Alliance Boots and Superdrug, and Holland & Barrett.

Amongst the products it represents are Sambucol Elderberry and Vertese gelatine-free supplements.

Chief executive Michael Toxvaerd called Brunel a "well-run" and "respected" company.

The £4m initial cash consideration for 100 per cent of Brunel's shares is being provided by a debt facility arranged with KBC Bank NV, consisting of a five-year term loan plus £3.5m revolver loan that replaces an existing facility.

The acquisition agreement also includes earn out considerations: for 2007 0.8m if 30 per cent PBIT growth is achieved on 2006 levels; and for 2008 1.1m if 70 percent growth is achieved on 2006 levels.

The earn-out may be extended to 2009 with a reduced consideration payable.

The Brunel deal is the second piece of good news from NeutraHealth this month. It has also announced a licensing agreement under which its products will be used by health practitioners operating in Champneys Spas across the UK, and Champneys-branded vitamins and supplements are expected to be made available through retail outlets later this year.

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Thomson Financial - 18th April 2007

NeutraHealth says integration of Brunel Healthcare has been 'seamless'

LONDON (Thomson Financial) - NeutraHealth PLC (LSE: NUT.L - news) said the integration of Brunel Healthcare into the group has been 'seamless', and the expected benefits are beginning to be realised.

In a statement to the company's AGM, NeutraHealth Chairman Martin Gatto said Brunel has strengthened its Vertese brand with a further 2 product lines being listed in 440 Boots (LSE: AB.L - news) stores from this month.

He said the TravelGuard range has now achieved the expected distribution across nationwide retailers with presence in 500 Boots stores, 220 Holland & Barrett stores and 20 Waitrose stores.

The Champneys range of supplements was officially launched at the end of March and has been 'well received by the consumer market,' according to Gatto.

'We have an exciting year ahead as we grow our businesses and new brands, and continue our acquisition strategy,' he said.

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