Twinlabs - Rexall Sundown - rumor - acquisition
Ft. Lauderdale Sun Sentinel news - 5/2/99
sun-sentinel.com
Headed by Damon DeSantis, son of the chairman of the board, this multi-level marketing operation has grown to 100,000 such distributors, and the division, known as Rexall Showcase International, is becoming established in Hong Kong and Taiwan and recently entered the Japanese market. Sales exceeded $160 million in fiscal 1998, representing 30 percent of total revenue.
Company officials are tight-lipped about possible acquisitions, but one target, analysts say, could be Twinlab Corp., which markets its vitamins in health food stores and had a net income of $1.7 million for the three-month period ending March 31. That was $6.6 million lower than the comparable period in 1998.
Twinlab's stock has fallen from a 52-week high of almost $48 to less than $9 at the end of last week, making the company attractive as a takeover target, analysts said.
"They would be a good match because Rexall Sundown has excellent penetration in the mass market, while Twinlab has a strong presence in health food stores," said Yudi Bahl, an analyst for U.S. Bancorp Piper Jaffray in Minneapolis. |
