USANA Health Sciences Announces Strategic Acquisition of Hiya Health
USANA Health Sciences has acquired a 78.8% controlling stake in Hiya Health for $205 million in cash. Hiya, a direct-to-consumer provider of children's health products, reported LTM net sales of $103 million, net income of $19 million, and adjusted EBITDA of $22 million as of September 30, 2024. The company serves over 200,000 customers and demonstrated 50% sales growth compared to 2023, with anticipated 30% growth in 2025.
The acquisition is expected to be immediately accretive to USANA's 2025 adjusted EBITDA and provides strategic benefits including market expansion in the children's health sector, strengthened U.S. operations, and channel diversification through Hiya's subscription model. The deal includes a put/call feature for USANA to acquire the remaining equity based on Hiya's performance.
USANA Health Sciences ha acquisito una partecipazione di controllo del 78,8% in Hiya Health per 205 milioni di dollari in contante. Hiya, un fornitore diretto di prodotti per la salute dei bambini, ha riportato vendite nette LTM di 103 milioni di dollari, un reddito netto di 19 milioni di dollari e un EBITDA rettificato di 22 milioni di dollari al 30 settembre 2024. L'azienda serve oltre 200.000 clienti e ha dimostrato una crescita del 50% delle vendite rispetto al 2023, con una crescita prevista del 30% nel 2025.
L'acquisizione è prevista per essere immediatamente positiva per l'EBITDA rettificato di USANA del 2025 e offre vantaggi strategici che includono l'espansione nel mercato della salute dei bambini, il rafforzamento delle operazioni negli Stati Uniti e la diversificazione dei canali attraverso il modello di abbonamento di Hiya. L'accordo include una caratteristica put/call per permettere a USANA di acquisire il restante capitale in base alle performance di Hiya.
USANA Health Sciences ha adquirido una participación controladora del 78.8% en Hiya Health por 205 millones de dólares en efectivo. Hiya, un proveedor directo de productos de salud para niños, reportó ventas netas LTM de 103 millones de dólares, ingresos netos de 19 millones de dólares y un EBITDA ajustado de 22 millones de dólares al 30 de septiembre de 2024. La empresa atiende a más de 200,000 clientes y demostró un crecimiento en ventas del 50% en comparación con 2023, con un crecimiento anticipado del 30% en 2025.
Se espera que la adquisición sea inmediata y beneficiosa para el EBITDA ajustado de USANA en 2025 y proporciona beneficios estratégicos que incluyen la expansión del mercado en el sector de la salud infantil, el fortalecimiento de las operaciones en EE. UU. y la diversificación de canales a través del modelo de suscripción de Hiya. El acuerdo incluye una característica put/call que permite a USANA adquirir el capital restante en función del rendimiento de Hiya.
USANA Health Sciences는 Hiya Health의 78.8%의 지배 지분을 2억 5백만 달러에 현금으로 인수했습니다. Hiya는 직접 소비자에게 아동 건강 제품을 제공하는 업체로, 2024년 9월 30일 기준으로 LTM 순매출 1억 3백만 달러, 순이익 1천9백만 달러 및 조정 EBITDA 2천2백만 달러를 보고했습니다. 이 회사는 20만 명 이상의 고객에게 서비스를 제공하며, 2023년과 비교해 판매가 50% 증가했으며 2025년에는 30%의 성장이 예상됩니다.
이번 인수는 USANA의 2025년 조정 EBITDA에 즉각적으로 긍정적인 영향을 미칠 것으로 예상되며, 아동 건강 분야에서의 시장 확장, 미국 내 운영 강화, Hiya의 구독 모델을 통한 채널 다변화 등 전략적 이점을 제공합니다. 이 거래에는 Hiya의 성과를 기반으로 남은 지분을 인수할 수 있는 put/call 기능이 포함되어 있습니다.
USANA Health Sciences a acquis une participation majoritaire de 78,8% dans Hiya Health pour 205 millions de dollars en espèces. Hiya, un fournisseur direct de produits de santé pour enfants, a rapporté pour les 12 derniers mois un chiffre d'affaires net de 103 millions de dollars, un bénéfice net de 19 millions de dollars et un EBITDA ajusté de 22 millions de dollars au 30 septembre 2024. L'entreprise sert plus de 200 000 clients et a démontré une croissance des ventes de 50 % par rapport à 2023, avec une croissance anticipée de 30 % en 2025.
L'acquisition devrait immédiatement contribuer au EBITDA ajusté de USANA pour 2025 et offre des avantages stratégiques, y compris l'expansion de marché dans le secteur de la santé des enfants, le renforcement des opérations aux États-Unis et la diversification des canaux grâce au modèle d'abonnement de Hiya. L'accord comprend une fonctionnalité put/call permettant à USANA d'acquérir le capital restant en fonction des performances de Hiya.
USANA Health Sciences hat eine Mehrheitsbeteiligung von 78,8% an Hiya Health für 205 Millionen Dollar in bar erworben. Hiya, ein Direktanbieter von Gesundheitsprodukten für Kinder, meldete zum 30. September 2024 einen LTM-Umsatz von 103 Millionen Dollar, einen Nettogewinn von 19 Millionen Dollar und ein bereinigtes EBITDA von 22 Millionen Dollar. Das Unternehmen bedient über 200.000 Kunden und verzeichnete ein Umsatzwachstum von 50 % im Vergleich zu 2023, mit einer prognostizierten Wachstumsrate von 30 % im Jahr 2025.
Die Akquisition wird voraussichtlich sofort einen positiven Einfluss auf das bereinigte EBITDA von USANA im Jahr 2025 haben und bietet strategische Vorteile wie die Markterweiterung im Bereich der Kindergesundheit, die Stärkung der US-Operationen und die Diversifizierung der Vertriebskanäle durch das Abonnementmodell von Hiya. Der Deal umfasst eine Put/Call-Funktion für USANA, um das restliche Eigenkapital basierend auf der Leistung von Hiya zu erwerben.
- Immediate accretion to 2025 adjusted EBITDA
- Hiya's strong financial metrics: $103M LTM sales, $19M net income
- 50% YoY sales growth with projected 30% growth in 2025
- Large customer base of 200,000+
- Diversification into direct-to-consumer subscription model
- Expected lower consolidated effective tax rate
- Significant cash outlay of $205M from reserves
- Future obligation to purchase remaining 21.2% stake
Insights
Hiya is a fast-growing, emerging leader of high-quality children’s health & wellness products.
Broadens USANA’s reach into the highly attractive direct-to-consumer channel driven by Hiya’s powerful subscription model with runway for sustainable future growth.
Expected to be immediately accretive to 2025 adjusted EBITDA.
9/30/2024 LTM net sales of
The Company will discuss the transaction during a conference call on Monday, December 23, 2024, at 5:00 PM ET.
“The Hiya brand is a natural fit for USANA and this acquisition represents a key strategic milestone for our business,” said Jim Brown, President and Chief Executive Officer of USANA Health Sciences, Inc. “Hiya’s co-founders, Darren Litt and Adam Gillman, have disrupted the children’s health and wellness market by building a high quality, better-for-you brand that aligns with our vision of creating the healthiest family on Earth. This strategic acquisition adds a diversified layer of growth to USANA’s overall business, while maintaining our commitment to our core direct sales business, where we continue to invest in initiatives to drive growth. Notably, this acquisition will allow USANA to reach a broader audience by diversifying distribution channels through Hiya, which we believe will enhance our ability to generate sustainable long-term growth and deliver value for our stakeholders. Darren and Adam will continue to lead Hiya through its next phase of growth. Their leadership and expertise is instrumental to Hiya’s business, which is now part of USANA’s mission and strategic objectives.”
Darren Litt, co-founder and CEO of Hiya, commented, “Today represents an exciting chapter for Hiya and we are thrilled to join the USANA family. As parents ourselves, we recognized that so many wellness companies did not prioritize our children’s health interests, so we created Hiya to give families the very best in clean, honest nutrition. With the help of USANA's extensive capabilities, support and international expertise, we can now extend that commitment to create healthy products for more families in more countries. USANA and Hiya share a deep commitment to improving the lives of families everywhere by providing the best nutritional products possible, and we look forward to continuing this exciting journey as part of USANA.”
Strategic Rationale
-
Fast-Growing, Emerging Leader in the Children’s Health and Wellness Market. The acquisition of Hiya provides the opportunity for USANA to expand its presence in the children’s health & wellness market through Hiya. For the last twelve months ended September 30, 2024, Hiya’s net sales of
grew$103 million 50% as compared to fiscal year 2023. For fiscal year 2025, the Company currently anticipates Hiya’s net sales growth to approach30% year-over-year. - Strengthens USANA’s Financial Profile. Hiya offers a compelling subscription model with attractive margins, profitability, and cash flow generation, which is expected to enhance the Company’s ability to deliver long-term growth and drive shareholder value. Hiya’s domestic profitability diversifies USANA’s geographic sales mix and is anticipated to lower the Company’s consolidated effective tax rate and create a more tax-efficient structure.
- Presents Opportunity to Accelerate Growth and Enhance Profitability by Leveraging Synergies. Over the next several years, USANA and Hiya will work together to take advantage of identified synergies, assets and expertise across both companies to create efficiencies, and to accelerate growth and profitability. For example, there are opportunities for Hiya to leverage USANA’s significant manufacturing and international expansion expertise. Similarly, USANA may leverage Hiya’s market data insights, marketing expertise, and children-focused products within its direct sales channel.
- Channel Expansion into Direct-to-Consumer Wellness Market with a Leading and Proven Brand. Hiya currently holds a leading position in children’s Vitamins, Minerals & Supplements brand sales in the United Statesⁱ and has a clear pathway and strong growth strategy to become the #1 children’s wellness platform through new product introductions, channel expansion, and geographic expansion. Hiya’s commitment to being the most trusted and preferred brand for wellness products in the 0-18 age range is an additive category for the Company and is complimentary to USANA’s vision of the healthiest family on Earth.
-
Expands the Company’s United States Operations. The transaction meaningfully expands and diversifies the Company’s revenue mix as Hiya’s net sales are generated in
the United States through their direct-to-consumer subscription model, with plans to enter other sales channels. This will allow USANA to reach a broader audience of health-conscious consumers to grow the enterprise’s overall customer base.
ⁱ Source: Nielsen
Transaction Highlights
-
The Company made an initial cash investment of approximately
(subject to customary closing and post-closing purchase price adjustments) in exchange for a$205 million 78.8% ownership stake in Hiya. - Transaction structure includes a put/call feature that provides for USANA’s acquisition of the remaining rollover equity at a pre-negotiated valuation scale, which is based on Hiya’s financial performance.
-
The transaction was financed with
cash on hand with the balance covered by the Company’s existing credit facility.$200 million
BofA Securities acted as exclusive financial advisor to the Company in connection with the transaction. Wilson Sonsini Goodrich & Rosati, P.C. served as the Company’s legal advisor. William Hood & Company, LLC acted as exclusive financial advisor to Hiya. Bodman PLC acted as Hiya’s legal advisor.
Conference Call
The Company will provide a supplemental presentation and discuss the transaction on a conference call on Monday, December 23, 2024 at 5:00 PM Eastern Time. The supplemental presentation and live audio webcast of the conference call will be available on the Company’s investor relations website at http://ir.usana.com.
Non-GAAP Financial Measures
This press release contains the non-GAAP financial measure LTM adjusted EBITDA of Hiya. Adjusted EBITDA is a Non-GAAP financial measure of earnings before interest, taxes, depreciation, and amortization that also excludes certain adjustments as indicated below in the reconciliation from net income.
The Company prepares its financial statements using
The following is a reconciliation of net income, presented and reported in accordance with GAAP, to Adjusted EBITDA:
(Unaudited) |
|||
Last Twelve Months Ended ( |
|||
30-Sep-24 |
|||
Net income |
$ |
19,416 |
|
Definitional Adjustments: |
|||
Interest expense |
|
143 |
|
Depreciation and amortization |
|
38 |
|
Income tax expense |
|
80 |
|
EBITDA before Adjustments |
|
19,677 |
|
|
|||
Adjustments to EBITDA: |
|||
Transaction expenses and other non-recurring items |
|
760 |
|
Non-operational costs |
|
566 |
|
Normalizations |
|
321 |
|
Timing adjustments |
|
212 |
|
Management compensation |
|
142 |
|
Adjusted EBITDA |
$ |
21,678 |
About USANA
USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Associates and Preferred Customers throughout
About Hiya
Hiya is the leading children's health brand, re-imagining kids' wellness with an inspired range of clean-label products. Offering a delicious and high-quality line of powders and chewables, Hiya is at the forefront of wellness with a focused assortment of better-for-you products. Since its founding in 2020, Hiya has established itself as a trusted name in the industry and is loved by both parents and children with adherence to the highest clean nutrition standards, ingredient transparency, and commitment to continuous improvement through ongoing collaborations with experts. More information on Hiya can be found at www.hiyahealth.com.
Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including but not limited to statements that: Hiya is fast growing; the Hiya acquisition will be accretive to USANA’s 2025 adjusted EBITDA, experience net sales growth approaching
View source version on businesswire.com: https://www.businesswire.com/news/home/20241222197799/en/
Investor contact:
Andrew Masuda
Investor Relations
(801) 954-7201
investor.relations@usanainc.com
Media contact:
Sarah Searle
(801) 954-7626
media@usanainc.com
Source: USANA Health Sciences, Inc.
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