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GNC Buys LuckyVitamin.com

August 23, 2011

1 Min Read
GNC Buys LuckyVitamin.com

PITTSBURGHGNC Holdings Inc. is acquiring LuckyVitamin.com, an online retailer of a wide range of nationally branded nutritional supplements. The acquisition is being funded with cash on hand and is expected to close within 30 days, subject to customary closing conditions. GNC.com and LuckyVitamin.com will continue to operate as separate businesses, each with its own product offerings and target customers. Terms of the deal were not disclosed.

Joe Fortunato, president and CEO of GNC, said LuckyVitamin.com allows GNC to leverage its existing capabilities, provide synergies to strengthen the competitive position of LuckyVitamin.com and gain market share in the discount e-Commerce channel.

This acquisition will allow us to participate in the online nutritional discount market without compromising our GNC Live Well brand or the market positioning of our successful GNC.com business," said Jeffrey R. Hennion, GNCs executive vice president and chief marketing officer and e-commerce.

LuckyVitamin.coms founders Sam Wolf and Gary Wolf will continue to oversee the LuckyVitamin.com business.

LuckyVitamin.com, founded in 2004 and based in Norristown, PA, generated approximately $40 million in revenue for the last 12 months, earning positive EBITDA margin. GNC expects the acquisition to be accretive, beginning in 2012. The earnings impact in 2011 is expected to be neutral, as positive EBITDA contribution is offset by transaction-related expenses.

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