Usana Health Sells Business Unit

Shares rise on a deal to sell its third-party contract manufacturing segment.
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Usana Health Sciences

(USNA) - Get Report

said Tuesday it will sell some assets and inventory related to its third-party contract manufacturing business in Draper, Utah.

The company, which develops nutritional, personal care and weight management products, predicts the deal will close sometime during the third quarter. It did not disclose financial terms of the sale. The third-party contract manufacturing business generated $1.95 million of revenue on the first quarter.

Usana said it will retain assets related to manufacturing and packaging its Sense skin and beauty care products and will still manufacture them at the Draper location.

"The sale of our third-party contract manufacturing business will allow us to focus 100% of our efforts on growing and expanding our direct selling business," Usana President David Wentz said.

The Salt Lake City-based company's shares closed Tuesday's session higher by $1.46, or 3.9%, at $39.13.