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OmniSource Buys 2 Firms; Value of Deals May Total $7 Million

October 11, 1987|JOHN TIGHE

OmniSource, a Laguna Hills maker of vitamin and mineral supplements, said it has acquired two complementary nutrition companies in deals that could have a total value of $7 million.

In the largest deal, OmniSource purchased privately owned Avante Management Group, a Carlsbad nutrition consulting and marketing firm, in exchange for OmniSource stock and stock options that have a potential value of $6 million, according to R. Marcus Watkins, OmniSource president.

Watkins said Santa Ana-based New Source, a privately owned distributor of nutritional and fitness products, was purchased for $1 million in cash, notes and OmniSource stock.

"With Avante we get people with extensive experience, and with New Source we get the New Source product line," Watkins said.

Watkins said publicly traded OmniSource expects 1987 sales of $20 million, with net income of more than $1 million.

Formed in February with an initial $1.7-million capital investment, OmniSource currently has about $10 million in assets.

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