News

GNC mulling financial strategy options, including acquisition option

May 9, 2016

Vitamin and health supplement seller GNC Holdings is looking for a buyer as one financial option to boost shareholder value.

The chain, which boasts 9,000 stores, has tagged Goldman Sachs and a law firm for strategy regarding financial "alternatives," according to a company statement. The $3.1 billion enterprise released an announcement Monday detailing it is launching "a thorough evaluation of the company's current operating plan, as well as potential value maximizing alternatives such as accelerated refranchising strategies, capital structure optimization, partnerships and other value-creating collaborations, or a potential sale of the company."

GNC Chairman Michael F. Hines states the company is in the early stages of a "broad review." The news prompted a 6 percent gain in early morning trading.

 "While the review is ongoing, GNC will continue to act with the necessary urgency to deliver improved financial performance by addressing our near-term challenges and continuing to execute our strategic initiatives," said Hines.