China's Bright Food in talks to buy US vitamin retailer GNC Holdings
07 Dec 2010
China's Bright Food Group Co, owned by the Shanghai municipal government, is close to finalising a deal to buy US vitamin retail chain GNC Holdings Inc for $2.5 billion to $3 billion, The Wall Street Journal reported yesterday, citing people familiar with the matter.
The paper said that the deal is likely to be announced in the next few days but its sources cautioned that last-minute snags could delay or derail the deal, especially as the two sides are still haggling about a final contract.
Pittsburgh, Pennsylvania-based GNC, which was acquired by Los Angeles-based private equity firm Ares Management and the Ontario Teachers' Pension Plan Board in 2007 for $1.65 billion, is a retailer of health and nutrition-related products, including vitamins, supplements, minerals, herbs, sports nutrition, diet and energy products.
GNC has over 4,800 retail locations throughout the US and franchise operations in 48 countries. The retailer had sales of $1.71 billion last year and $920.7 million in the first half of 2010.
Founded in 2006, Bright Food is a large conglomerate in China's food industry having cut deals with well-known multinational companies, including Coca Cola, PepsiCo, Nestle, Danone, Suntory, Xiehe and Dajing, among others.
It has more than 3,300 supermarkets and retail outlets and e-commerce network in Shanghai and other provinces.
