Hi-Tech Pharmaceuticals Acquires LG Sciences
Adds to lineup of sports nutrition brands in c-stores, drug stores, other retailers
NORCROSS, Ga. -- Hi-Tech Pharmaceuticals, a provider of sports nutrition and weight-loss products, has acquired LG Sciences, a sports nutrition and bodybuilding brand.
“The acquisition … accelerates Hi-Tech's growth strategy, substantially boosts our bodybuilding and sports nutrition portfolio and diversifies our business stream," said Hi-Tech president and CEO Jared Wheat.
"We believe this strategic transaction will enhance our industry-leading innovative bodybuilding and sports nutrition position by expanding market opportunities," he said. "We manufacture products for many of the leading sports nutrition brands, as well as our own family of brands, and believe we can add a lot of innovation to an already hardcore bodybuilding line. Our strong operational structure and aggressive acquisition strategies have enabled the continued growth of our sports nutrition and weight-loss business and will increase profit margins due to ability to bring the production of Innovative products to our industry-leading manufacturing facilities."
As a leading provider of premium bodybuilding products in the sports nutrition category, LG Sciences brands align with the company's continued focus on sports supplements, while further diversifying the Hi-Tech portfolio.
Over the years, LG Sciences has led the nutritional supplement industry in new-to-market ingredients, the company said. It has also built relationships with private-label customers.
"This will tie in nicely with Hi-Tech's goals and growth and offer LG Sciences private-label customers many more option due to our massive manufacturing platform," said Wheat.
"We will also be able to offer energy shots and ready-to-drink beverages, and being able to offer our customers access to manufacturing and distribution facilities in Atlanta and Reedsville, Pa., is a significant competitive advantage," Brandon Schopp, vice president of contract manufacturing with Hi-Tech, said.
"LG Sciences products will serve as a growth catalyst for our sports supplement segment, providing this division with another leading brand in the high-growth sports nutrition category," said Steve Smith, executive vice president at Hi-Tech Pharmaceuticals. "The acquisition of LG Sciences expands our offerings of hardcore sports supplements, and broadens our appeal with younger consumers." said Smith.
Hi-Tech has been able to increase its market share in the United States through the acquisition of Synergy Nutritional Industries in 2005, and gained a larger market share when it acquired Advanced Performance Supplements (APS) in 2011. Hi-Tech gained further industry dominance when it acquired Nittany Pharmaceuticals and ALR Industries in 2012.
Hi-Tech's recent strategy has been, and according to its leaders will continue to be, growth through merger and acquisition activity. In 2015, Hi-Tech has acquired Advanced Pharmaceuticals and Nutritionals, FormuTech Nutrition, Sports One, Innovative Laboratories and with the most recent acquisition by Hi-Tech of LG Sciences it is the fifth acquisition for Hi-Tech, promising more this year.
Hi-Tech Pharmaceuticals, Norcross, Ga., is a leading global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) and prescription pharmaceuticals, nutritional products and consumer products. It creates, manufactures and sells products sold by retailers including GNC, Rite Aid, Albertson's, CVS, Duane Reade, Hannaford, Cardinal Health, McKesson, Mclain, Winn-Dixie, Harmon Stores, Fred Meyer, Osco Drugs, Supervalu, Roundy's, Sav-On Drugs, Meijer, Fruth Pharmacy, Kinney Drug, Kinray, A&P, Kmart, Amazon.com, Drugstore.com, and more than 5,000 independent drug stores, as well as in more than 80,000 convenience stores.