Visalus was without doubt the hottest company in the Industry in 2011 and a good part of 2012 with incredible growth before sales growth reversed.
This news about a reported offer to purchase Visalus’ parent company, Blythe Inc., just hit the financial press yesterday at Bloomberg.com . . .
CVSL Said to Offer $268 Million to Acquire Direct Seller Blyth
By Lauren Coleman-Lochner – Oct 29, 2013 12:01 AM ET
CVSL Inc., a direct-selling company run by Mary Kay Inc.’s former chairman, has offered to buy Blyth Inc. for about $268 million, two people with knowledge of the matter said.
CVSL offered to pay $16.75 a share for Blyth, which sells candles, fragrances and ViSalus weight-loss products, said the people, who asked not to be identified because the information is private. The offer, which was extended last week in a letter to Blyth, could be made public by CVSL as soon as today, one of the people said. Blyth rose 21 percent to close at $15.50 (BTH) yesterday, giving it a market value of $248.2 million.
CVSL is run by John Rochon, who was chairman of Mary Kay — the cosmetics seller known for giving pink Cadillacs to top sales representatives — until 2001. Last year he took over Computer Vision Systems Laboratories Corp. (CVSL) to create a new direct-selling company. The Plano, Texas-based company’s other acquisitions this year include Tomboy Tools Inc. and Agel Enterprises LLC, which makes nutritional and skin-care products.
Blyth, based in Greenwich, Connecticut, reported revenue of $211.7 million for the second quarter, down from $309.5 million a year earlier, because of slumping sales of ViSalus, and the company cut its full-year earnings outlook in August. Ahead of yesterday’s gains, the shares had fallen 18 percent this year.
Rochon, 62, oversaw a sixfold increase in revenue at Mary Kay from the time he led its leveraged buyout in 1985 to about $3 billion when he left in 2001…
It will be interesting to see how this offer proceeds, what effect it will have on Visalus and all of the distributors there, as well as how CVSL will move forward. CEO Rochon obviously has a plan to grow the company by acquisitions.