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Dec. 18, 2012 /PRNewswire/ -- Blyth, Inc. (NYSE: BTH), a direct to consumer company and leading designer and marketer of candles, accessories for the home, and health and wellness products sold through the direct selling and direct marketing channels, today announced that it and the other members of ViSalus have reached an agreement whereby Blyth increased its ownership in ViSalus to more than 80% for a payment of
$57.4 million to the other members of ViSalus. In addition, the other members of ViSalus have agreed to exchange their membership interests for capital stock of ViSalus, Inc. which will be redeemable in
December 2017 for a total redemption price of
$147.5 million. ViSalus will also redeem in
January 2013 all of the outstanding interests under its Equity Incentive Plan for
$25.3 million, which will be funded by Blyth.
The new agreement between Blyth and the other members of ViSalus provides for a series of transactions, detailed below, that achieve the mutually-shared objectives of providing ViSalus' Founders and its management team the opportunity to participate in ViSalus' future results through their ongoing ownership and participation in a new management incentive plan. In addition, the new agreement should improve Blyth's long-term liquidity by providing for a redemption of the ViSalus stock it does not own in December 2017. All of the members of ViSalus agreed to sell their interests in ViSalus ratably, allowing Blyth to achieve an ownership position in excess of 80%.
Commenting on the execution of this definitive agreement between Blyth and the other members of ViSalus, including all of the Founders,
Robert B. Goergen, Chairman and Chief Executive Officer of Blyth said, "We are extremely pleased to have crafted an agreement that meets our objectives of providing the ViSalus Founders and other members of their management team with an equity participation in ViSalus' future results. Moreover, as a group, the ViSalus Founders continue to be significant Blyth shareholders, strengthening further this alignment. I look forward to working with Ryan and his management team to grow the ViSalus business together, making ViSalus a worldwide household brand synonymous with 'healthy lifestyle.'"
Ryan Blair, ViSalus' Chief Executive Officer, echoed Mr. Goergen's comments, adding, "Nick, Blake and I are especially pleased to have finalized an agreement that demonstrates our full commitment to the global growth of ViSalus and the opportunity for our Promoters and customers to make an impact on the worldwide obesity epidemic. Our goal is to make ViSalus a household brand by providing a simple, social and achievable method for our customers to reach their health and fitness objectives."
Mr. Blair continued, "Today's agreement also highlights the ViSalus/Blyth partnership. We have worked with Blyth for five years now and we plan to work with them for many more."