Herbalife to Go Private in Merger Deal

Herbalife International Inc., a multilevel marketer of nutritional and weight-management products, said it has agreed to be acquired by two private equity firms for about $685 million.

Under the merger agreement with Whitney & Co. and Golden Gate Capital Inc. announced late Wednesday, shareholders of Westchester-based Herbalife will receive $19.50 a share in cash for each share they own. In Nasdaq trading, Herbalife’s Class A shares closed up 24 cents at $15.39 and the Class B shares closed up 16 cents at $14.40 before the deal was announced.

Herbalife Chief Executive Frank Tirelli said the deal “provides a solid foundation with committed, long-term investors dedicated to the future success of Herbalife.”

Last July, two major Herbalife investors urged the board to put the firm up for sale, citing concern over its direction since the death of its charismatic leader, Mark Hughes. Hughes, who founded the company in 1980, died in 2000.

Whitney, based in Stamford, Conn., manages about $5 billion of assets for major endowments and pension plans. San Francisco-based Golden Gate Capital is an investment firm with about $700 million of capital under management.