Management take over Unicity

Direct-selling firm Unicity Network has been bought out by a group of its management executives from parent company Netherlands-based Numico. Financial terms of the sale were not disclosed.

In March this year Numico said it had signed a letter of intent for the sale of the unit to investment company Activated Holdings, but they did not reach "a mutually satisfactory conclusion", said the firm.

Paulo Bangerter, former general counsel of Unicity Network, and Aaron Webber, previous VP of global sales, will share responsibility for the divested unit, which will continue to receive R&D support and manufacturing services from Numico, said the new owners.

"We are very enthusiastic about this opportunity and our long-term vision for the company,"​ said Webber. "This is essentially an entrepreneurial business and from today forward it will be both entrepreneurially held and managed, enabling us to reach our significant potential."​

Unicity generated negative EBITA in this year's first quarter with sales of €43 million. Along with supplement manufacturer Rexall Sundown, the unit has been targeted for divestment since the end of last year. The Utah-based business was formed in 2001 through the merger of Rexall Showcase International and Enrich International, but has failed to impact profits at the cash-strapped group.

The deal will result in a net cash inflow of around €20 million by the end of Numico's first quarter 2004, including the proceeds, resulting tax benefits and all related costs.

"We are pleased to sell Unicity to the management and believe this will be positive for the business,"​ said CEO Jan Bennink, calling the sale another step in the group's strategy to become a specialised infant nutrition company.

Distributed by Independent Business Owners, Unicity's top-selling products include Lean Control weight management systems and the patented cholesterol-reducing fiber drink Bios Life 2.