Natraceutical Concludes its Divestment in Naturex

This is almost the end of a process that began in late 2009 with the integration of the Ingredients Division of Natraceutical in the listed French multinational Naturex, through which Natraceutical became its main shareholder and led the financial and business reorganization in Natraceutical.

11 Dec 2012 --- Natraceutical has completed the divestment process in Naturex, after several private placements conducted between the months of October to December. During these months, Natraceutical has disposed 1,324,200 shares, representing 17.13% of the share capital of Naturex, with total revenues of 73.12 million euros. Natraceutical will now proceed to cancel its syndicated loan, amounting to 39.92 million euros, which single maturing was set for April 2013.

This is almost the end of a process that began in late 2009 with the integration of the Ingredients Division of Natraceutical in the listed French multinational Naturex, through which Natraceutical became its main shareholder and led the financial and business reorganization in Natraceutical. Thus, in April 2010 Natraceutical announced the refinancing of its debt, for a total amount of 77.99 million euros, through a syndicated loan with single maturity in April 2013. This allowed the company to focus its efforts in the development of the Nutritional Supplements Division, with Forté Pharma as its umbrella brand for weight control, health and beauty product ranges, which are exclusively sold in pharmacies, primarily in Europe.

Throughout the year 2011, Natraceutical made early redemptions of the syndicated loan for a total amount of 26.47 million euros, through the gradual reduction of its stake in Naturex, and has continued to reduce its debt significantly over 2012. The financial deleveraging of Natraceutical will be finalized in the coming days with the application of the proceeds from today’s operation against the cancellation of the remaining of its syndicated loan.

Following the divestment in Naturex, the Natra group will have obtained total revenues of 160.87 million euros for the assets contributed to Naturex in December 2009. Of those, 149.25 million euros have been generated directly by Natraceutical. After cancelling the syndicated loan, Natraceutical will have a free cash of 26.5 million euros, which will allow the company to conclude its balance sheet optimization and start a new phase of development for Forté Pharma.

According to François Gaydier, CEO of Natraceutical: “They year 2012 has certainly represented a year of inflection for Natraceutical, both for the next prepayment of the entire syndicated loan as for the significant operational recovery of Forté Pharma. These circumstances are the pillars for future development, on which Natraceutical is confident”. 2 Operational optimization policies implemented in Forté Pharma over 2012 allowed Natraceutical to place its EBITDA at 1.78 million euros in the first nine month, compared with -0.64 million euros in the third quarter of 2011.

Natraceutical starts this new stage with a change in the chairmanship of the company: Natra, main shareholder and the one holding the presidency of Natraceutical, will be represented in future by Galo Alvarez, replacing Manuel Moreno, who leaves office at front of Natraceutical and will remain as first shareholder in Natra.

Galo Alvarez is member of the board of Natra since July 2011. He has a degree in Business Administration from the University of Deusto and a Master’s degree in Management Development. Galo Alvarez began his career in the Anglo-Dutch multinational Unilever, where he was responsible for several of its brands in the division of personal care and household products. He later joined the consultancy firm B+I Strategy, where he has been involved in strategic planning, competitive plans, mergers and acquisitions, feasibility and economic impact studies in national and international companies both public and private. Also, Galo Alvarez is professor of Strategic Management at Deusto Business School – University of Deusto.