Photo: The Nu Skin Innovation Center at the company’s Provo, Utah, headquarters.
Shares in Nu Skin Enterprises are trading higher after the skincare and health supplement maker announced late Wednesday that it has inked a $210 million investment deal with Chinese investors.
The Provo, Utah, company said it has reached an agreement with a group of investors led by Ping An of China Securities Hong Kong, one of China’s largest insurers, and additional investors affiliated with ZQ Capital Ltd.
The company also said it expects second-quarter revenue to come in at the high end of or slightly above its previous guidance of $560 million to $580 million.
At the close of trading on Thursday, shares in Nu Skin were up 10 percent to $44.90.
Under the terms of the deal, Ping An ZQ China Growth Ltd. will purchase from Nu Skin $210 million in convertible senior notes due in 2020. The offering, at $46.50 per share, is set to close by June 21.
“Ping An and ZQ Capital bring significant local market knowledge and valuable expertise that we believe will positively impact our long-term growth opportunities in this important region,” said Truman Hunt, CEO of Nu Skin.
Nu Skin plans to invest a portion of the proceeds in its China business, which underwent a rocky period in 2014 after fraud accusations prompted a government investigation. The remainder will be used to buy back shares in the company, boosting the stock’s value for shareholders.
The agreement also stipulates that Shen Zheqing of ZQ Capital will be appointed to Nu Skin’s board.
In 2015, Nu Skin Greater China accounted for more than one-third of the company’s $2.25 billion in sales. Based on annual sales, Nu Skin is the No. 10 direct selling company in the world, as ranked on the 2016 DSN Global 100.
