Total Produce, the fruit distributor spun out of Fyffes, has entered the burgeoning US sports supplements market with a more than $10 million deal to buy the assets of a bust company founded by a former winner of Mr Universe.
Allegro, the brand distribution arm of Total Produce, has bought the assets of Gaspari Nutrition, a New Jersey company founded in 1999 by former professional bodybuilder Rich Gaspari.
Total Produce is the second listed Irish company to enter the US sports nutritionals market, following Glanbia’s recent heavy investment in the sector.
Difficulties
Gaspari, whose sales of bodybuilding supplements peaked at $85 million in recent years but are expected to fall below $40 million this year, got into financial diffculties during the summer and hired an investment bank to seek a buyer.
The company reached a “partnership” agreement with Allegro in October, and entered Chapter 11 bankruptcy proceedings shortly afterwards with debts of about $16 million.
An auction of its assets was held in recent weeks as part of the bankruptcy process, during which the Irish company bid $10.1 million, with two underbidders at $10 million and $8.6 million.
The deal was sanctioned by a court last week, despite objections from a committee of creditors who claimed they did not have enough information on whether or not Mr Gaspari would remain involved with the business.
Total Produce declined to comment, but sources said it was an opportunistic deal and the company is not planning a major push into the US health supplement market.
