Natrol Completes $26 Million Sale Leaseback of HQ in CA

Natrol Web Site - April 5, 2007

Natrol, Inc. (Nasdaq: NTOL), a premier manufacturer and marketer of nationally branded nutritional products, today announced that it has closed on a sale/leaseback transaction with an affiliate of TA Associates Realty for its corporate headquarters and shipping facilities, both located in Chatsworth, California. The sale price of the real estate was $26 million. After paying off the associated mortgage debt, taxes and expenses that relate to the transaction, the Company received approximately $12 million in free cash at closing.

“During the last year, we have been a disciplined company, building profits quarter by quarter,” said Wayne Bos, Natrol’s President and CEO when making the announcement. “We unlocked a hidden asset, our real estate. Twelve million dollars equates to approximately 30% of our current market capitalization. We believe that releasing the cash will help us drive capitalization up by utilizing what was a dormant resource to stimulate growth. We believe this will benefit our shareholders. We understand the importance of leveraging the cash generated to make the type of strategic investments to drive top line growth and meaningful profits.”

The Company will continue to occupy the two facilities, leasing back the space at market rates for a 5-year term, with two 5-year renewal options. Approximately half of the gain on the sale will be recorded in the second quarter of 2007. The remainder will be amortized over 5 years and will offset rental expenses per US GAAP rules. Sphere: Related Content