TROY ? Weight-loss and fitness company ViSalus announced Wednesday that its Co-Founders and key stockholders have reached an agreement in principle to complete a management buyout from Blyth.
The fine print on the deal is all shares of ViSalus redeemable convertible preferred stock will be exchanged for ViSalus common stock. That means ViSalus’ Founders’, employees’ and early stockholders’ ownership of ViSalus will increase to 90 percent. Blyth will continue to be an equity holder, retaining 10 percent of ViSalus common stock.
The transaction will also eliminate ViSalus’ obligation to redeem approximately $143 million of its preferred stock, most of which is owed to the company’s three Co-Founders, as well as Blyth’s guarantee of that obligation.
“The Co-Founders and I are very excited to go ‘all in’ on a business that we started and the future prospects of which we believe in wholeheartedly,? said Ryan Blair, ViSalus Co-Founder and CEO. ?I am also personally grateful to the Goergens and to Blyth for nearly 10 years of mentoring and support.?
“We are completely invested in the success of our company and believe that our long-term growth prospects have never been better,” said ViSalus Co-Founder and Global Ambassador Nick Sarnicola, a former Grand Valley State University student and native of Wyoming, Michigan.
