Direct Selling eNews
In this issue:
Golden Gate Capital Acquires Neways International
Neways International, a worldwide leader in dietary supplements and personal care products, announced today that it has been acquired by Golden Gate Capital, a San Francisco-based private equity firm. For Neways, founded in 1992 by Tom and Dee Mower, this marks the completion of its multi-year transition from a small founder-owned firm to a world-class multinational company with top-notch management, professional ownership, and sales in 23 countries. Financial details of the transaction were not disclosed.
"This sale marks a major milestone in our history," stated Eric Larsen, CEO of Neways. "Since 1992, Neways has been a leader in the personal care and nutritional products industry, and our partnership with Golden Gate serves to strengthen that position and maximize our potential." Larsen, who joined Neways in 2004, will be continuing as CEO of the company.
"As a strategic investor, we focus on businesses with attractive growth potential and Neways is a perfect fit," said Prescott Ashe, a Managing Director of Golden Gate Capital. "The company's core mission-creating products with 100 percent non-harmful ingredients-is at the heart of consumers' desire to live longer, healthier lives and has driven more than a decade of consecutive, annual revenue growth. By partnering with the Neways management team and its approximately 500,000 global distributors, we are confident that this strong historical performance will continue."
Tom and Dee Mower, founders of Neways, said of the transaction, "Selling Neways was one of the hardest decisions of our lives. We believe it is in the best interests of ourselves, employees and distributors to make the change at this time and wish to thank everyone who contributed to the success of Neways." The Mowers, who had each owned 50 percent of the company, divorced in July 2000. Last year, the Mowers were convicted by a jury of one count of conspiracy to defraud and six counts of tax evasion, stemming from a 2003 indictment. Federal prosecutors said the two cashed an estimated $3.2 million in overseas commission checks without reporting the money to the IRS, avoiding about $1 million in taxes.
Neways is a leading manufacturer and distributor of safe, effective and innovative personal care and nutritional products. Products are sold through a worldwide network of independent distributors with sales in 23 countries.
Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $3.0 billion of capital under management.
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Natural Health Trends Introduces New Wellness Beverage
Natural Health Trends Corp. a leading international direct selling company, recently announced the launch of its newest wellness product, TriFusion Plus™, a beverage high in antioxidants, lycopene and other natural ingredients as part of a healthy lifestyle. TriFusion PlusT was introduced to over 250 distributors at NHT's regional conference held in Las Vegas and is one of several new products to be introduced under the company's re-defined global mission, "Committed to the Wellness of the World."
TriFusion PlusT is a unique blend of exotic fruits and berries rich in antioxidants, lycopene, and more. Its main ingredients are acai berry, goji berry, the mangosteen fruit, and the gac fruit; each containing phytonutrients. Phytonutrients are compounds having antioxidative properties found naturally in plant-based foods such as fruit and vegetables.
Scientific literature suggests that antioxidants protect cells from the damaging effects of free radicals. Every one ounce serving of TriFusion Plus™ has 500 milligrams each of acai berry, goji berry and mangosteen fruit, in addition to 1200 milligrams of gac fruit.
Goji berries offer vitamins B1, B2, B6, C and E as well as 19 amino acids. Found in the Himalayas and Tibet, this fruit is already used in traditional Chinese medicine to boost energy and improve sleep function. The acai berry contains more than 50 antioxidants, said to have the most of any edible berries. Known in Vietnam as the "Fruit from Heaven," gac provides high concentrations of lycopene and beta-carotene, used to promote longevity and vitality in traditional Chinese medicine. Additionally, it is thought that mangosteen boasts antimicrobial qualities and many cultures take advantage of the fruit's reportedly positive effects on the human digestive system. These ingredients are blended together with apple, pear, lychee, blueberry and pomegranate juices for a great taste and an addition to healthful nutrition.
"As part of our strategy to reinforce the 'natural health' positioning of the company, we responded to a need we saw in the market, not only from the distributors, but from actual consumers as well," explains Stephanie Hayano, President and CEO of Natural Health Trends. "We are thrilled to add this great-tasting juice to our selection of health and wellness products and continue our dedication to improving wellness in the global community."
The nutritional and health benefits of TriFusion PlusT main "superfruit" ingredients will be discussed in an upcoming book from Barbara Wexler, M.P.H., a chronic disease epidemiologist and medical writer with more than 25 years of experience as a clinician, researcher, educator, and administrator. Part of Woodland Publishing's "Health Series," Wexler provides up-to-date information on the synergistic benefits of mangosteen, pomegranate, goji berry, acai berry, and gac fruit.
As part of the product launch, Natural Health Trends has developed a special program, the “Commit to Health 90-Day Challenge," asking consumers to test TriFusion Plus™ for three months. If, for any reason, product users do not experience 100 percent satisfaction, the company will refund the complete purchase price minus the cost of returning the empty bottles. Consumers are asked to provide a written explanation of dissatisfaction and handle the shipping expenditure.
Natural Health Trends Corp. is an international direct selling company operating through its subsidiaries in 15 countries throughout Asia, North America, Europe and Latin America.
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RBC Announces Restructuring
of South Korea Operations
RBC Life Sciences Inc. recently reported that it had completed a restructuring of its South Korea operations effective October 31, 2006. The restructuring was accomplished by selling the company's wholly owned subsidiary, RBC Life Sciences Korea Co. Ltd. to a private South Korean company, which is owned by an individual who was the executive in charge of the company's South Korean operations prior to the sale. As part of the sale agreement, RBC also entered into a five-year exclusive license agreement with the purchaser under which RBC products will continue to be sold in South Korea.
Clinton Howard, CEO, said, "We are pleased to complete the restructuring of our South Korean operations through implementation of the licensee distribution model that we have used successfully in other international markets. We continue to believe that South Korea is an excellent market for our nutritional products. Distributing our products through a license agreement with a local, private company will significantly reduce in-country administrative costs and permit local management to focus its efforts on growing the distribution network. By taking this action, the company will save additional cash investments that would have been required to fund not only operating costs, but also first-year compliance costs associated with Section 404 of the Sarbanes-Oxley Act."
In accordance with the terms of the sale, the company received cash of $100,000 and a long-term receivable, the fair value of which was $520,000 based on an imputed interest rate of 10.75 percent. In connection with this transaction, the company expects that in the fourth quarter of 2006, it will record a non-cash charge against earnings of approximately $200,000 to $250,000.
RBC Life Sciences is a leading manufacturer of nanoscale nutrients, specializing in highly potent antioxidants in Microhydrin® PlusT that not only scavenge oxidized compounds but also recharge exhausted antioxidants for greater defense against free radicals in the body. The company develops and markets research-based dietary supplements that provide nutrients often missing in modern diets, sold through various distribution channels.
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Herbalife Launches Best Defense
Herbalife Ltd., a global nutrition direct selling company, is launching Best DefenseT, an effervescent tablet that boosts the body's immune system.
The dietary supplement contains a powerful combination of echinacea, standardized as 15 percent polysaccharides to boost immunity*; 25 mg of zinc sulfate, clinically shown in a study to support the body's immune system*; and 1000 mg vitamin C, a powerful antioxidant.
Best DefenseT can also be beneficial for travelers in confined spaces like an airplane, in a crowded, germ-laden environment or when feeling under the weather.*
The product costs $9.95 for 10 tablets in an easy-to-carry tube. Suggested dosage is 1-2 tablets daily. Two flavors are available, Orange Boost and Citrus Mint.
Herbalife is a global network marketing company that sells weight-management programs, nutritional supplements, and personal care products intended to support a healthy lifestyle. HerbalifeŽ products are sold in 62 countries through a network of more than one million independent distributors.
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Univera LifeSciences Launches Philanthropic Program
to Nourish Impoverished American Kids
It is a tragic fact that children are the ones who suffer the most from poverty. Recent studies by the U.S. Census Bureau indicate that 13.8 million children in the United States live below the poverty line in "food insecure homes," and that malnourished children are likely to suffer lifelong "brain, cognitive, and psychological impairment." It's not just that these children are going hungry-they're also lacking any semblance of proper nutritional balance, which has everything to do with their having the opportunity to live healthy, productive lives now and in the future.
Eye-opening statistics like these compelled Univera LifeSciences to make a difference in the lives of impoverished children in America by launching a non-profit charity to provide nutritional support for these at-risk children. Univera Serve First's inaugural philanthropic program was launched with a $1 million product contribution from Univera, which has to date been matched by over $100,000 in cash contributed by individual Univera sales associates, with more coming in every day. The program is administered by Vitamin Angels, a non-profit, non-sectarian organization created in 1994 to fight malnutrition around the world.
"Univera is dedicated to bringing the best of nature to mankind," said Stuart Ochiltree, CEO of Univera. "The establishment of Univera Serve First demonstrates our field/corporate partnership to ensure that those in our own backyard who are impoverished are not forgotten. We are committed to providing them with the opportunity for better health, which is fundamental to development."
Ochiltree referenced studies that have shown children's performance in school, academically as well as behaviorally, is better when their nutritional intake is improved.
"Vitamin Angels, supported by companies like Univera LifeSciences and Johnson & Johnson, has been delivering critical nutrients to children in countries around the globe," said President Howard Schiffer. "This program with Univera Serve First marks a significant effort in the United States where a high quality nutritional meal-replacement drink-Ageless Essentials™-is being delivered to impoverished elementary school children in rural Mississippi."
Univera LifeSciences Inc. is a healthy aging company offering nutrition products and home-business opportunities to more than 100,000 people worldwide. Univera is part of the ECONET global family of health and natural product companies, which have operations in the United States, Canada, Korea, Mexico, Russia and China.
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