Orem-based Enrich International announced Friday it has signed a letter of intent to be purchased by Royal Numico NV, a nutritional products maker headquartered in the Netherlands.
Financial details of the deal were not released.Enrich, a privately held company founded in 1985, makes and distributes nutritional products. Its newest product launch is a weight management system, "EnRich & Thin."
Rick Redford, vice president of distributor relations at Enrich, said the acquisition will provide the company with capital to continue its growth strategies domestically and abroad.
"This is a very big day in Enrich's history," Redford said. "We were not in a state of financial instability prior to this, but it will definitely enable us to grow in an ever-changing market environment. In fact, sales are up well over 50 percent over last year's numbers."
Royal Numico NV markets its products in 95 countries worldwide. It operates 49 manufacturing and distribution centers and employs 27,000 people. The company reported its total sales top $3 billion on a yearly basis.
Other companies in the Royal Numico family include GNC, Efamol and Nutricia Cow & Gate.
The Enrich acquisition is subject to regulatory and other approvals. If approved, Redford said the company will operate as a wholly-owned subsidiary of Royal Numico NV.
Enrich does not expect any employee or distributor layoffs as a result of the acquisition, Redford said, nor does it expect any management changes.
The company employs 340 people, Redford said, most of whom work in Enrich's Orem facilities. It also has more than 150,000 distributors worldwide.
Richard Bizzaro, Enrich chairman and chief executive officer, said in a letter to the company's distributors that he will sign a long-term contract to continue leading the company.
"The decision to partner with a larger entity is based on choice and not necessity," Bizzaro wrote. "I determined shortly after joining Enrich that for us to achieve the explosive growth and market position that our products, distributors, and company deserve, we would need more resources in a shorter period of time than we could obtain on our own. Our competitors and the new economy simply won't wait."