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Chattem to enter dietary supplement field with Sunsource buy for about $37.5 mil..

This article was originally published in The Rose Sheet

Executive Summary

CHATTEM ACQUISITION OF SUNSOURCE FOR APPROXIMATELY $37.5 MIL. gives the health and beauty aid marketer an entry into the dietary supplement business. Chattanooga, Tenn.-based Chattem will purchase Maui, Hawaii-based Sunsource International for cash and stock with a total value of roughly 1-1/2 times Sunsource's 1996 sales of $25 mil. The price includes contingent payments to be made over a period of six years. The value paid at closing will be about one times sales.
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