Atrium acquisition signals focus on direct sales

Atrium Innovations Inc. has kicked off 2009 with another acquisition in the health and nutrition supplement business, one that will take it into direct-to-consumer sales for the first time. The Quebec company said yesterday it has struck a deal to buy Nutri-Health Supplements LLC of Cottonwood, Ariz., for $23.9-million (U.S.) in cash, plus two further payments to be based on the growth in the U.S. company's profitability this year and next. "It's a very strategic acquisition for us," Atrium chief executive officer Pierre Fitzgibbon said in a telephone interview, noting that the U.S. firm makes about 90 per cent of its sales direct to consumers by mail order. The balance is indirect sales through health-food stores and health-care professionals under the Sedona Labs, Sedona Labs Pro and Meta Foods labels. The deal follows smaller acquisitions by Atrium in Germany last month and the Netherlands in September, and Mr. Fitzgibbon said the company has enough financing capacity available to pursue additional deals, although it will be cautious. ATB (TSX) rose 74 cents (Canadian) to $13.80.