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General Nutrition Agrees to Be Acquired

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From Associated Press

General Nutrition Corp., one of the nation’s largest retailers of health products, has agreed to be purchased by a Boston-based investment firm for nearly $330 million, officials said Monday.

GNC’s board unanimously agreed to sell the company to Thomas H. Lee Co. and its affiliate, ML-Lee Acquisition Fund L.P., which specialize in leveraged buyouts.

Officials said the cash tender offer calls for payment of $11.50 a share to the holders of 28.7 million shares, or 91.3%, of GNC’s outstanding common stock on or before next Monday.

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GNC Chairman Jerry D. Horn said the company’s management was pleased with the planned transaction.

“Our commitment to enhance shareholder value while providing General Nutrition with a new, more growth-oriented investor base has been realized,” Horn said.

Horn said the $11.50 tender price represents a 48% premium to the market price of GNC stock on March 23, the day before the possible sale of the company was announced.

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Neither Lee nor GNC officials said how the sale would affect the company’s management or its operations.

Thomas H. Lee and ML-Lee own or partly own Playtex Family Products Co., Stanley Interiors Corp., National Shoes and American Health Cos.

General Nutrition operates about 1,100 General Nutrition Center stores nationwide.

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