Sign up USA
Proactive Investors - Run By Investors For Investors

GNC’s shares soar after announcing US$300mln investment from China’s Harbin Pharmaceutical

Harbin Pharmaceutical Group Holding Ltd (Hayao) is to invest US$300mln in the health and performance supplements retailer, becoming the company’s single largest shareholder
pharmaceutical
China is the largest international market for supplements.

GNC Holdings Inc. (NYSE:GNC) shares soared 25% in early trading after it unveiled a US$300mln strategic investment and a joint venture in China.

Harbin Pharmaceutical Group Holding Ltd (Hayao) is to invest US$300mln in the health and performance supplements retailer, becoming the company’s single largest shareholder.

READ: GNC pulls plans to borrow in the bond, loan markets, hires Goldman Sachs to evaluate alternatives

GNC and Hayao have also agreed to form a joint venture for the manufacturing and distribution of GNC-branded products in the fast growing Chinese market.

The US retail group said as well that, it is looking to extend the maturity date of its existing term loan facility by two years to March 2021.

Ken Martindale, GNC’s chief executive, said: "By partnering with Hayao we enhance our capital structure and financial flexibility and establish a strong platform for growth in the Chinese market.

In a separate statement, GNC also unveiled its fourth-quarter numbers which saw the company report a net loss per share of US$2.99, down from a US$6.36 per share net loss in the same period a year earlier, as quarterly revenue fell to US$557.7mln, down from US$569.9mln the year before.

In early New York trading, GNC’s shares were 25% higher at US$5.25.

View full GNC profile View Profile

GNC Holdings Timeline

Related Articles

Flying Brands
July 17 2018
“We look forward to the future with confidence and excitement," said Flying Brands boss Trevor Brown.
H&T Pawnbrokers store
July 02 2018
Last year the company saw gross profits jump 45% thanks to a booming personal loan book and robust sales of luxury second-hand watches and jewellery.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use