Hungarian dietary supplement maker Humet said Friday it signed a letter of intent to purchase a majority stake in Canadian peer Enerex Botanicals partly through the purchase of existing shares and a subsequent capital raise.
Humet will make the acquisition through its US unit, HUMET-PBC North America, raising capital at the subsidiary by Canadian $1.8 million ($1.78), as necessary for the transaction. Humet and Enerex agreed to sign a contract on the transaction by May 15, 2008. Enerex sells about 40 different dietary supplement products on the North American market. It is also present on the online market through its wholly-owned subsidiary Health Connections. Enerex had revenue of about Canadian $2.7 million in 2006 and 2007. Humet had preliminary consolidated after-tax profit of Ft 401 million on sales of Ft 627 million last year. Profit rose from just Ft 49 million in 2006, thanks largely to the consolidation of its 51% stake in the American unit. Sales rose 477%. (MTI-Econews)