Downtown-based health and fitness nutrition company Herbalife Ltd. announced late last week an agreement to acquire certain assets from London-based personalized supplements company Bioniq for $55 million.
The transaction, taken in combination with a pair of purchases last year, aims to bolster Herbalife’s personalized nutrition program offerings.
“The future of health and wellness is becoming more personalized and informed by data,” Herbalife Chief Executive Stephan Gratziani said in the announcement.
“By combining Bioniq’s personalized supplement technology with Pro2col and the power of our global distributor network, we are expanding our ability to deliver personalized wellness at global scale,” Gratziani added, referring to one of last year’s purchases, health and wellness digital application Pro2Col Health LLC of Tampa, Florida.
Herbalife investors, however, took a somewhat dimmer view of the March 26 acquisition announcement, sending shares down 3.7% that day to close at $14.74. That was a bigger drop than the broader markets experienced that day, with the Dow Jones Industrial Average down 1%, the Nasdaq Composite Index down 2.4% and the S&P 500 down 1.7%.
Over the past five weeks, Herbalife shares have slid about 25% from a 52-week high of nearly $20 a share on Feb. 20.
Herbalife focus on personalized nutrition
Founded in 1980, Herbalife uses a distributor network to sell health and nutrition products in more than 90 countries. Last year, the company topped $5 billion in revenue and reported $228 million in net income.
Gratziani took the company’s helm last May, replacing longtime chief executive Michael Johnson, who became executive chairman.
Herbalife has over the past year or so intensified its push into personalized nutrition products. Last year, in addition to the Pro2col purchase, Herbalife acquired a 51% controlling ownership interest in Melissa, Texas-based manufacturing company Link BioSciences Inc., which uses a proprietary platform to process biometrics, biomarkers, DNA (deoxyribonucleic acid) and lifestyle data.
Personalized supplement market
Bioniq develops personalized supplement formulas using a patented product personalization engine, an individual’s health background and a proprietary database of biomarkers. Bioniq’s formulations are designed for wellness-oriented consumers and elite athletes.
According to the announcement, combining Bioniq’s offerings with Herbalife’s global manufacturing expertise will facilitate the delivery of personalized nutrition at scale and speed.
“I founded Bioniq in 2019 with a vision to help people optimize their well-being through a science-driven approach to nutrition that incorporates biomarker and lifestyle data,” Vadim Fedotov, Bioniq’s president, said in the announcement. “I am excited to join Herbalife with its global distributor network and commitment to advancing wellness at scale”
Ronaldo blessing
Portuguese soccer star Cristiano Ronaldo has figured prominently in both companies, as a user of their products, a shareholder and a celebrity endorser. According to the announcement, Ronaldo has used Bioniq products for several years and is a shareholder in that British company. He has also been both a celebrity endorser and investor in Herbalife. In February, Herbalife announced that he had invested $7.5 million for a 10% equity stake in the Pro2col division of Herbalife.
“Throughout my career, biometrics and personalized nutrition have been central to helping me perform and compete at the highest level,” Ronaldo said in the announcement. “As a longtime Herbalife and Bioniq user, I’ve experienced firsthand how a tailored approach to nutrition can help optimize performance. I’m delighted to see Bioniq’s personalized supplements become part of Herbalife’s expanding access to nutritional supplements, helping people take a more informed approach to their health, wellness and performance.”
