AMSTERDAM, NETHERLANDS Food maker sells GNC to a private firm

The health retailer's new owner is based in New York.
AMSTERDAM, Netherlands (AP) -- Dutch baby and nutritional food maker Numico NV is selling its U.S. vitamin store operator General Nutrition Co. to the private investment firm Apollo Management for $750 million.
The sale announced Friday marks the end of Numico's ill-fated foray into the U.S. supplements market, which began with the purchase of GNC in 1999 for $2.5 billion, in part to take advantage of the then-booming demand for herbal supplements such as St. Johns Wort and the stimulant ephedrine.
Pittsburgh-based GNC is the largest retailer of vitamin, mineral and herbal supplements in the United States, operating more than 5,000 stores. The chain has several local stores, including locations in Boardman, Warren and Niles.
New York-based Apollo said it "looked forward" to working with GNC's management team and "helping build the company in the future."
The deal is subject to approval by regulatory authorities and Numico shareholders, but Numico said it expects to close the deal this quarter. The money will be used to reduce debt, it said.
Net loss
The year after the GNC deal, Numico purchased supplements maker Rexall Sundown for $1.8 billion, making it the largest maker and seller of supplements in the United States.
But the sector soon ran into a slump, and Numico was forced to write down the value of both subsidiaries, posting a net loss of euro1.64 billion in 2002. Sales of ephedrine were discontinued after it was linked with heart attacks and other adverse health effects.
With a debt of about euro2 billion ($2.38 billion) and its net worth near zero, Numico sold Rexall to NBTY Inc. for $250 million in May and announced it was looking for a buyer for GNC.
Numico said Friday it will book a loss of euro375 million on the sale.
In a statement, Numico chief executive Jan Bennink said the deal will secure the company's financial position and allow the company to grow its remaining businesses in infant nutrition and making food for hospitals.
"The divestment has many advantages for Numico: it will significantly reduce the risk level, both financially and operationally; provides us with more financial flexibility; and allows management to focus completely on maximizing profitable growth," Bennink said.
GNC employs 15,200 people and has 5,750 stores.