California-based Hauser is to sell its wholly owned subsidiary Botanicals International Extracts to the Zuellig Group for between $8.2-$9.2 million as part of its reorganization plan under chapter 11.
Most of the proceeds of the sale will be used to pay the outstanding $8.6 million owed to senior creditor Wells Fargo Bank. The sale is subject to approval by the United States Bankruptcy Court which could take up to 60 days.
Hauser filed for bankruptcy protection on April 1 this year and has already sold off its Hauser Laboratories Division. Botanicals International Extracts, which makes botanical extracts, dietary supplements and vitamins, made sales of approximately $27 million for the the year to September 30, which represents more than 70 per cent of Hauser's revenues.
"We continue to look for strategic buyers of our remaining business units, including Hauser Contract Research," said Kenneth Cleveland, president and chief executive officer.
The Zuellig companies are already 34 per cent shareholders of Hauser and could own approximately 43 per cent of the company if they exercise their outstanding warrants.