Nu Skin Enterprises Announces Strategic Transaction of Mavely for $250 Million
Nu Skin Enterprises (NYSE: NUS) announced that its subsidiary Rhyz Inc. has completed a strategic transaction with Later, selling its Mavely affiliate marketing technology platform for approximately $250 million in cash and a minority equity stake in the combined Later/Mavely business. Of this amount, $33 million will be distributed to other Mavely equity holders.
The transaction represents a five-times return on Nu Skin's investment since acquiring Mavely in 2021. Mavely will continue providing technology and social commerce capabilities to support Nu Skin's affiliate marketing business. The company plans to use the proceeds to reduce debt, fund innovation, and repurchase shares under its existing stock buyback program.
Nu Skin Enterprises (NYSE: NUS) ha annunciato che la sua filiale Rhyz Inc. ha completato una transazione strategica con Later, vendendo la sua piattaforma di tecnologia di marketing affiliato Mavely per circa 250 milioni di dollari in contante e una partecipazione azionaria di minoranza nel business combinato Later/Mavely. Di questa somma, 33 milioni di dollari saranno distribuiti ad altri azionisti di Mavely.
La transazione rappresenta un ritorno di cinque volte sull'investimento di Nu Skin dall'acquisizione di Mavely nel 2021. Mavely continuer脿 a fornire tecnologia e capacit脿 di commercio sociale per supportare il business di marketing affiliato di Nu Skin. L'azienda prevede di utilizzare i proventi per ridurre il debito, finanziare l'innovazione e riacquistare azioni nell'ambito del suo attuale programma di riacquisto di azioni.
Nu Skin Enterprises (NYSE: NUS) anunci贸 que su filial Rhyz Inc. ha completado una transacci贸n estrat茅gica con Later, vendiendo su plataforma de tecnolog铆a de marketing de afiliados Mavely por aproximadamente 250 millones de d贸lares en efectivo y una participaci贸n accionaria minoritaria en el negocio combinado Later/Mavely. De esta cantidad, 33 millones de d贸lares ser谩n distribuidos a otros accionistas de Mavely.
La transacci贸n representa un retorno de cinco veces sobre la inversi贸n de Nu Skin desde la adquisici贸n de Mavely en 2021. Mavely seguir谩 proporcionando tecnolog铆a y capacidades de comercio social para apoyar el negocio de marketing de afiliados de Nu Skin. La empresa planea utilizar los ingresos para reducir la deuda, financiar la innovaci贸n y recomprar acciones dentro de su programa existente de recompra de acciones.
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Nu Skin Enterprises (NYSE: NUS) a annonc茅 que sa filiale Rhyz Inc. a finalis茅 une transaction strat茅gique avec Later, vendant sa plateforme de technologie de marketing d'affiliation Mavely pour environ 250 millions de dollars en esp猫ces et une participation minoritaire dans l'entreprise combin茅e Later/Mavely. Sur ce montant, 33 millions de dollars seront distribu茅s 脿 d'autres actionnaires de Mavely.
La transaction repr茅sente un retour de cinq fois l'investissement de Nu Skin depuis l'acquisition de Mavely en 2021. Mavely continuera 脿 fournir des technologies et des capacit茅s de commerce social pour soutenir l'activit茅 de marketing d'affiliation de Nu Skin. L'entreprise pr茅voit d'utiliser les produits pour r茅duire sa dette, financer l'innovation et racheter des actions dans le cadre de son programme de rachat d'actions existant.
Nu Skin Enterprises (NYSE: NUS) hat angek眉ndigt, dass ihre Tochtergesellschaft Rhyz Inc. eine strategische Transaktion mit Later abgeschlossen hat, in deren Rahmen die Mavely Affiliate-Marketing-Technologieplattform f眉r ungef盲hr 250 Millionen Dollar in bar und eine Minderheitsbeteiligung am kombinierten Later/Mavely-Gesch盲ft verkauft wurde. Von diesem Betrag werden 33 Millionen Dollar an andere Mavely-Aktion盲re verteilt.
Die Transaktion entspricht einer f眉nfmaligen R眉ckzahlung von Nu Skins Investition seit der Akquisition von Mavely im Jahr 2021. Mavely wird weiterhin Technologie und Social Commerce-F盲higkeiten bereitstellen, um das Affiliate-Marketing-Gesch盲ft von Nu Skin zu unterst眉tzen. Das Unternehmen plant, die Erl枚se zu nutzen, um Schulden zu reduzieren, Innovation zu finanzieren und Aktien im Rahmen seines bestehenden Aktienr眉ckkaufprogramms 锄耻谤眉肠办锄耻办补耻蹿别苍.
- Strategic sale of Mavely platform for $250 million in cash and equity
- 5x return on investment since 2021 acquisition
- Debt reduction from transaction proceeds
- Planned share buyback program to enhance shareholder value
- Retained access to Mavely's technology and social commerce capabilities
- None.
Insights
The
The transaction's proceeds will strengthen the balance sheet through debt reduction while funding innovation and share repurchases. This three-pronged capital allocation strategy balances deleveraging with growth investment and shareholder returns. The retention of Mavely's technology services ensures operational continuity for Nu Skin's core affiliate marketing business.
For a company with a
This deal represents a major liquidity event that dramatically improves Nu Skin's financial profile. After distributions to other equity holders, the company will retain approximately
The
鈥淭ogether, we believe Later and Mavely will provide enhanced capabilities to our company as we pursue our broader beauty, wellness and lifestyle ecosystem vision, while the transaction generates additional capital and resources for us to increase innovation in our core Nu Skin business and investment in our Rhyz companies,鈥� said Ryan Napierski, Nu Skin president and CEO. 鈥淭his underscores the value of Rhyz to incubate and scale meaningful businesses with synergistic value across the enterprise.鈥�
This transaction generated an approximate five-times return on the company鈥檚 cumulative investment in Mavely since it was acquired in 2021. Proceeds from the transaction are expected to be used to pay down debt and fund additional innovation. The company also plans to use its strengthened balance sheet to buy back stock under its existing stock repurchase program, providing value to its shareholders.
Evercore Group LLC acted as exclusive financial advisor and Simpson Thacher & Bartlett LLP acted as legal counsel to Nu Skin Enterprises.
About Nu Skin Enterprises and Rhyz
The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz Inc. is an integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by 40 years of scientific research, the company鈥檚 products help people look, feel and live their best with brands including Nu Skin庐 personal care, Pharmanex庐 nutrition and ageLOC庐 anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, is a synergistic ecosystem of consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories.
Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company's current expectations and beliefs. All statements other than statements of historical fact are 鈥渇orward-looking statements鈥� for purposes of federal and state securities laws and include, but are not limited to, statements regarding the consideration to be retained by the company and its subsidiaries relating to the transaction, statements of management鈥檚 expectations regarding achievement of the company鈥檚 vision, the future performance and capabilities of the combined Later/Mavely business, the benefits of the continuing commercial services arrangement with Mavely, and planned uses of cash. In some cases, you can identify these statements by forward-looking words such as "will," 鈥減lan,鈥� 鈥渂elieve,鈥� "achieve," 鈥渆xpect,鈥� and 鈥渁nticipate,鈥� the negative of these words and other similar words.
The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following:
- the net proceeds to be retained by the company and its subsidiaries in connection with the closing of the transaction are subject to adjustments as set forth in the Unit Purchase Agreement in relation thereto, including post-closing determination of working capital and other elements of the purchase price, which may reduce the amount of consideration to be retained by the company and its subsidiaries;
- risk that the Mavely and Later businesses may encounter difficulties integrating their businesses or achieving the synergies that are anticipated from the transaction, or risks associated with not providing services to the company as currently anticipated;
- any failure of current or planned initiatives or products to generate interest among the company鈥檚 sales force and customers and generate sponsoring and selling activities on a sustained basis;
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risk that direct selling laws and regulations in any of the company鈥檚 markets, including
the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company鈥檚 business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events; - economic conditions and events globally;
- competitive pressures in the company鈥檚 markets;
- risk that epidemics, including COVID-19 and related disruptions, or other crises could negatively impact our business;
- adverse publicity related to the company鈥檚 business, products, industry or any legal actions or complaints by the company鈥檚 sales force or others;
- political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets;
- uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;
- risk of foreign-currency fluctuations and the currency translation impact on the company鈥檚 business associated with these fluctuations;
- uncertainties regarding the future financial performance of the businesses the company has acquired;
- risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;
- regulatory risks associated with the company鈥檚 products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements; and
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the company鈥檚 future tax-planning initiatives, any prospective or retrospective increases in duties or tariffs on the company鈥檚 products imported into the company鈥檚 markets outside of
the United States , and any adverse results of tax audits or unfavorable changes to tax laws in the company鈥檚 various markets.
The company鈥檚 forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company鈥檚 beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.
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Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577
Source: Nu Skin Enterprises Inc.
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