San Clemente-based Metagenics Inc., a maker of vitamins and supplements for doctors, chiropractors, nutritionists and others, is selling a majority of the company to the parent of Amway.
Ada, Mich.-based Alticor Inc. said earlier this week it plans to buy a majority of Metagenics for undisclosed terms.
Metagenics had sales of $200 million last year, according to Chief Executive Jeffrey Katke.
The company makes vitamins and supplements that are geared toward addressing health concerns.
Amway makes the Nutrilite line of supplements and foods, which generate more than a third of its $8.2 billion in annual sales.
Metagenics had hired an investment banker to raise money for expansion and allow some shareholders to cash out, Katke told The Grand Rapids Press newspaper.
The company is expected to continue operating on its own as part of Alticor, he said.
In 2003, Metagenics won a Family Owned Business award from the Business Journal and California State University, Fullerton’s Family Business Council.
Katke is quick to distance Metagenics from other vitamin makers, which he said primarily are marketing companies.
Metagenics spends about 7% of revenue on research, versus about 1% for other vitamin makers, he said.
Katke, a Wisconsin native, started Metagenics several years after his doctor recommended vitamins and dietary supplements that he said helped cure him of a mild form of hepatitis in the mid-1970s.
Katke family members are rooted in Metagenics. Brother Mike is director of medical marketing. Sibling Tim serves as national sales manager.
A third brother, Chris, started a nutritional counseling business. Julie Bolter, Katke’s only sister, and her husband own an insurance billing service for doctors, Integreat Consulting Group.
“So, we’ve got a couple of other family businesses that have sprung out of this family business,” Jeff Katke said.
When a family member isn’t able to do a job within Metagenics, Katke said he looks at bringing in professional management from the standpoint of protecting the family members in their roles as company shareholders.
“Everybody understands that, and they accept that because they realize the value of their shares is their future retirement and so on,” he said.
