
In the year prior to the sale, revenue and EBITDA were approximately $250 million and $45 million, respectively; however, the potential loss of Herbalife and over-capacity resulting from an industry downturn was causing capacity concerns and margin pressure. It was necessary to identify strategic buyers that would not be discouraged by the current industry conditions.
American Ingredients was earlier acquired by Global Health to assist in its sourcing of specialty raw materials for its unique products.
The sale of American Ingredients to PharmChem was completed as an assignment for the benefit of creditors to expedite a closing and preserve value.