HerbalEGram: Volume 5, Number 10, October 2008

Nature's Way Holding Company, a subsidiary of leading German phytomedicine manufactuer Willmar Schwabe Pharmaceuticals has purchased herb and dietary supplement manufacturer Enzymatic Therapy of Greenbay, WI. All 3 companies issued a press release that Schwabe had reached agreement to acquire all outstanding shares of Enzymatic Therapy with North Castle Partners, LLC, the controlling shareholder of Enzymatic Therapy. According to the release, “the agreement is subject to other shareholders delivering their signatures and provides for customary conditions to closing.”¹

All parties are privately-held companies so the details of the transaction, including the price, were not revealed. However, Schwabe had the benefit of the relative strength of the euro compared to the US dollar. (The value of the euro has fallen recently; dropping from about $1.60 in March to about $1.35 on Oct. 12.) The deal is expected to be closed at the end of November.

The press release refers to the fact that both companies market herbal preparations with a significant level of clinical testing. “The combination of these organizations brings together leading industry professionals across every business discipline and creates an unsurpassed portfolio of clinically validated natural products and ingredients.” ¹

Dirk Reischig, PhD, Chairman and CEO of Dr. Willmar Schwabe Pharmaceuticals stated in a Schwabe press release, "We are very delighted that Enzymatic Therapy, Inc. joins the Schwabe group of companies. We do believe that the complementary product portfolios and marketing know-how of Enzymatic Therapy and Nature’s Way will significantly strengthen our presence in the US market, which is one of Schwabe’s strategic key markets for future growth. Natural health care solutions will become increasingly important over the next few decades. The joined forces of Enzymatic Therapy, Nature’s Way and Schwabe Pharmaceuticals will therefore contribute significantly to consumers in the USA and abroad in achieving the best possible health and quality of life." ¹

Rory Mahony, CEO of Nature's Way said, "We look forward to leveraging the knowledge and expertise resident in our companies and to further enhance the significant business growth that both Nature's Way and Enzymatic Therapy have enjoyed over the past several years. We believe the dedication of the companies to the development of quality products will benefit our customers in many ways." ¹

Mahony added, “Nature’s Way and Dr. Wilmar Schwabe have built their business with quality products created, produced and sold by dedicated people who care about the health and well being of the consumer. Because Enzymatic Therapy has teams of great people who also have these cultural values they make a perfect partner to bring into the Schwabe family. With the leadership of Randy Rose and the expertise resident in both Enzymatic Therapy and Nature's Way we will build on our strengths and continue to offer the consumer quality products that they can trust.” (e-mail to M. Blumenthal, 10-9-08)

Randy Rose, CEO of Enzymatic added, "We are very pleased to align with Nature's Way and Dr. Willmar Schwabe Pharmaceuticals in elevating the health and well being of consumers and patients by combining the very best know-how of each of the companies. The highly ethical approach to delivering true natural medicines that improve lives is a consistent core value for all three entities and we look forward to advancing the natural health care solutions for the benefit of all." ¹

Rose added, “Every Associate within Enzymatic Therapy is absolutely delighted to be aligning with such a great team of people within the Nature’s Way Holding Inc. The value systems of the two organizations are aligned, as is the commitment on delivering the highest possible product quality and efficacy. I look forward to working with Rory Mahony and our collective team to elevate our mutual business with every customer as we improve the health of consumers.” (e-mail to M. Blumenthal, Oct. 9, 2008)

For the foreseeable future, the new company will continue operations from both of their respective manufacturing and distribution facilities, Enzymatic in Green Bay and Nature’s Way in Springville, UT. Mr. Rose will manage the company from Green Bay, assuming the role of CEO of the combined entity, and Mr. Mahony will act as the COO. Rose added, “I intend to spend significant time in both headquarter locations, as Rory and I focus on accelerating our combined company's positive growth.” (e-mail to M. Blumenthal, Oct. 14, 2008)

The press release stated that “Both Nature's Way and Enzymatic Therapy Inc. have developed a very loyal and consistently growing base of customers, consumers, and patients, who enjoy the health benefits of the products [they produce] every day.” ¹

The new combined entity’s initial focus “will be to further advance product development in bringing highly effective natural health solutions to market to elevate wellness for those critical health concerns of consumers.” The release continues, “The group will build upon the rich heritage and advanced research and development capabilities of each of the entities to create a new standard in natural health enhancement.” ¹

About W. Schwabe Pharmaceuticals, Nature’s Way, and Enzymatic Therapy Inc.

Dr. Willmar Schwabe Pharmaceuticals, headquartered in Karlsruhe, Germany, was founded in 1866. Today, the Schwabe group is the world leader in the manufacturing of herbal medicines and comprises six companies in Germany and more than 20 subsidiaries and joint ventures around the world. For more than 140 years, Schwabe Pharmaceuticals has been dedicated to providing consumers, patients, and health care professionals with clinically proven herbal medicines and natural health care solutions. As a vertically integrated pharmaceutical company Schwabe Pharmaceuticals controls the entire manufacturing process of many of its products, from growing and harvesting the plants to the production of the standardized herbal extracts and the finished goods phytomedicinal preparations. Schwabe products are sold in over 60 countries world-wide. Schwabe developed the world’s first standardized ginkgo (Ginkgo biloba) leaf extract, the world’s most clinically-tested extract of hawthorn (Crataegus monogyna) leaf with flower extract, and one of the world’s most clinically-tested saw palmetto (Serenoa repens) fruit extracts, South African Pelargonium sidoides, among others. Earlier this year Schwabe received the American Botanical Council’s Varro E. Tyler Commercial Investment in Phytomedicinal Research Award for 2008.

Nature’s Way products are sold through the natural products market channel throughout the United States and in 40 other countries. The company Nature’s Way was founded by Tom Murdock in 1968 in northern Arizona after he reportedly developed a small tablet made of the folkloric cancer remedy chaparral (Larrea divaricata) for his wife who had been diagnosed with throat cancer. The company moved to Springville, UT where it has been in operation for over 30 years, selling an extensive line of herbs, phytomedicines, and other dietary supplements. In the late 1980s, Nature’s Way owner Ken Murdock, Tom’s son, sold 2/3 of the company to two leading German phytomedicine manufacturers, Madaus AG and Willmar Schwabe Pharmaceuticals. Schwabe later purchased both Madaus’ and Murdock’s interests, becoming the sole owner of Nature’s Way. Nature’s Way markets numerous of Schwabe’s clinically-tested phytomedicinal preparations, including the leading ginkgo product (Ginkgold®), hawthorn (HeartCare®), and P. sidoides (Umcka®), and a saw palmetto with nettle (Urtica dioica) root extract (Prostol®), among others.

Enzymatic Therapy manufacturers and/or imports natural products in both the natural products and healthcare channels and in 15 countries outside the United States. Enzymatic was founded in 1986 by Terry Lemerond, at the time a natural food retailer in Green Bay, WI. Enzymatic was one of the first companies to market an extensive line of high quality standardized herb extracts in the United States and later also developed a line of products for health professionals under the PhytoPharmica® label. Enzymatic has been known as a pioneer in introducing various popular dietary supplements in the United States, being the importer of the leading black cohosh (Actaea racemosa, syn. Cimicifuga racemosa) root extract Remifemin® and other products, as well as being the initial importer and popularizer of Europe’s leading glucosamine sulfate product. In 2000. Lemerond sold a controlling interest of his company to North Castle Partners which has managed the company since. At that time North Castle also purchased Portland, OR-based NF Formulas from Bruce Canvasser, ND and other owners, a company founded by Canvasser and others in 1975, which made herbal preparations and other dietary supplements for health professionals.  For the past several years, it has been known in the dietary supplement industry that North Castle was looking for a buyer for the company.

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