Usana Acquires 78.8% Stake in Hiya Health for $205M

By Bobby Samwell • Monday, December 23 10:14 • Permanent Link

Usana Health Sciences, Inc. has announced its strategic acquisition of a 78.8% controlling ownership stake in Hiya Health Products, LLC, a leading direct-to-consumer provider of high-quality children’s health and wellness products, in a $205 million cash transaction. According to the press release, for the last twelve months ended September 30, 2024, Hiya generated net sales of $103 million, net income of $19 million, and adjusted EBITDA of $22 million.

The acquisition is expected to broaden Usana’s reach into the direct-to-consumer channel and be immediately accretive to the company’s 2025 adjusted EBITDA. Hiya’s net sales of $103 million grew 50% compared to fiscal year 2023, and the company anticipates net sales growth to approach 30% year-over-year for fiscal year 2025.

The transaction was financed with $200 million cash on hand, with the balance covered by Usana’s existing credit facility. BofA Securities acted as the exclusive financial advisor to Usana in connection with the transaction.

This acquisition is expected to strengthen Usana’s financial profile, enhance profitability, and diversify the company’s revenue mix as Hiya’s net sales are generated in the United States through a direct-to-consumer subscription model, with plans to enter other sales channels.

The press release also outlined a reconciliation of Hiya's net income to adjusted EBITDA, showing the adjustments made to arrive at the adjusted EBITDA figure. Additionally, it highlighted the strategic rationale behind the acquisition, including the opportunity for growth and profitability acceleration through leveraging synergies, as well as channel expansion into the direct-to-consumer wellness market.

As a result of the acquisition, Usana expects to reach a broader audience of health-conscious consumers and create sustainable long-term growth, delivering value for its stakeholders. As a result of these announcements, the company's shares have moved 2.1% on the market, and are now trading at a price of $34.07. For more information, read the company's full 8-K submission here.

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