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Xiwang Agrees to Acquire Canada’s Iovate Health for $730 Million by
Vinicy Chan
,
Ruth David
, and
Kiel Porter
June 13, 2016, 12:40 PM EDT
Deal for supplement maker expected to close this year
Iovate will keep headquarters and employees in place
Xiwang Foodstuffs Company Ltd. has agreed to buy Canadian nutrition supplement maker Iovate Health Sciences International Inc., according to statements from both companies.
The deal values Iovate at $730 million, Xiwang said in a filing with the Shenzhen Stock Exchange Monday. Xiwang outbid a number of other Chinese buyout firms that had made offers for the business, people familiar with the matter said earlier.
Chinese consumers’ demand for dietary supplements is rising as higher incomes, and problems such as obesity and diabetes, drive a desire for healthier lifestyles. Iovate owns fitness supplement brands MuscleTech and Six Star Pro Nutrition, and has partnerships with Wal-Mart Stores Inc. and Walgreens Boots Alliance Inc., according to its website.
Iovate said it would keep its North American headquarters in Oakville, Canada, all key executives as well as 330 existing employees in place.
Houlihan Lokey Inc. acted as financial adviser to Iovate on the transaction, expected to close later this year. HSBC Holdings Plc advised Xiwang
bloomberg.com |
