Company Founder Frank W. Gay II to Retire; Succeeded by New CEO Chad J. Clawson
PARK CITY, Utah, Aug. 23, 2017 /PRNewswire/ -- Nutraceutical International Corporation (NASDAQ: NUTR) ("Nutraceutical" or the "Company") today announced that HGGC, a leading middle-market private equity firm, has completed its previously announced acquisition of the company for $41.80 per share in cash. The transaction was originally announced on May 22, 2017, and was approved by Nutraceutical's shareholders on August 21, 2017.
With the completion of the transaction, Nutraceutical's common stock will cease trading and no longer be listed on the NASDAQ Stock Exchange.
"We are excited to complete our investment in this great company, and we look forward to working with the Nutraceutical team in its next phase of growth and evolution," said Les Brown, Managing Director and COO of HGGC, who becomes Executive Chairman of the Company. "We are confident there is a tremendous opportunity for the company to continue to build on its strong market position and to bring more great products to its loyal customers."
Concurrent with the closing of the transaction, Nutraceutical founder, Chairman and CEO, Frank W. "Bill" Gay II announces his retirement after leading the company for nearly 25 years. He is succeeded as CEO by Chad J. Clawson.
"Since founding Nutraceutical with other key management 24 years ago, I have decided it's time to spend more time with family and supporting some causes I care about. I truly will miss other members of the Nutraceutical management team, our hard-working employees and all our loyal customers," Gay said. "This is a tremendous company and industry, and I will look back fondly on my years at Nutraceutical. I believe that HGGC is the best partner we could have hoped to find and that Nutraceutical's best days are yet to come."
"We have endless appreciation for what Bill Gay has accomplished with Nutraceutical, not only building an incredible company, but also truly helping to shape and professionalize the natural products industry," said Steve Young, Co-Founder and Managing Director of HGGC. "We, at HGGC, and Chad are committed to upholding the high standard Bill has set, and we wish him the best for a well-deserved retirement."
Clawson has had an exceptional career as a Senior Operating Executive, including serving as President of Manufacturing and Distribution at Nutraceutical from 1999 to 2005. He comes to Nutraceutical from Service Experts, one of the largest HVAC equipment and service providers in North America, where he held the position of Chief Officer of Operational Excellence.
About Nutraceutical International Corporation
Nutraceutical is an integrated manufacturer, marketer, distributor and retailer of branded nutritional supplements and other natural products sold primarily to and through domestic health and natural food stores. Internationally, Nutraceutical markets and distributes branded nutritional supplements and other natural products to and through health and natural product distributors and retailers. Nutraceutical's core business strategy is to acquire, integrate and operate businesses in the natural products industry that manufacture, market and distribute branded nutritional supplements. Nutraceutical believes that the consolidation and integration of these acquired businesses provides ongoing financial synergies through increased scale and market penetration, as well as strengthened customer relationships.
Nutraceutical manufactures and sells nutritional supplements and other natural products under numerous brands, including Solaray®, KAL®, Dynamic Health®, Nature's Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Zhou Nutrition®, Pioneer®, Nutra BioGenesis®, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals®.
Nutraceutical owns neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom's Natural Foods™, Cornucopia Community Market™ and Granola's®. Nutraceutical also owns health food stores, which operate under the trade name Fresh Vitamins®.
Nutraceutical manufactures and/or distributes one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively sold internationally. Nutraceutical believes that, as a result of its emphasis on innovation, quality, loyalty, education and customer service, its brands are widely recognized in health and natural food stores and among their customers.
HGGC is a leading middle-market private equity firm with $4.3 billion in cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its "Advantaged Investing" model that enables the firm to source and acquire scalable businesses at attractive multiples through partnerships with management teams, founders and sponsors who reinvest alongside HGGC, creating a strong alignment of interests. Over its history, HGGC has completed more than 75 platform investments, add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value of more than $14 billion. More information is available at www.hggc.com.
SOURCE Nutraceutical International Corporation
© 2017 PR Newswire. All Rights Reserved.