California-based Natrol manufactures supplements for its own brands and for other companies
, its focus is on distributing a portfolio of health and wellness brands including nutritional supplements, functional teas and sports nutrition products.
"We believe this deal marks the onset of a new phase of our turnaround and are excited to demonstrate our capabilities to our investors," said Natrol president and CEO Wayne Bos.
Natrol claims it will leverage MRI to expand its portfolio of intellectual property as well as harness its capability for research and development.
"MRI has unique intellectual property and an excellent, but somewhat underdeveloped strategic position in this market," said Bos.
"We believe that we can help grow the business by improving manufacturing and logistics capabilities, expanding into new geographic markets, and extending the MRI product lines."
Established in 1997, fellow Californian company MRI supplies work-out performance products, including the brands CE2, NO2, Pro-Nos and Anabolic Switch.
Natrol distributes through 54,000 retailers nationally, as well as to more than 40 countries through distribution partners.
The company was strained following the decline of a low carb trend it had capitalized on.
The deal with MRI is designed to further stimulate its operations.
"Our strong existing product mix and ongoing R&D effort will complement Natrol well
and we believe that their well-developed operating infrastructure and developing global distribution capabilities will enhance our ability to grow," said MRI founder Ed Byrd.
In 2006, MRI recorded revenue of $21.4mn, with operating income of $3.1mn.
The overall category of sports nutrition is especially profitable and growing in the US.
According to Datamonitor, between 2000 and 2005, consumer spending on sport food and beverages alone grew by 6.7 percent to $3.1bn in the US.
The market analyst predicts that by 2010 total consumer spending on sports nutrition products will reach $6.9bn.
The US is set to account for $4.8bn of this.