USANA Health Sciences, Inc. has acquired a 78.8% controlling ownership stake in Hiya Health Products, LLC. This strategic acquisition is expected to broaden USANA’s reach in the children’s health and wellness market through Hiya’s subscription model. The deal, which closed today as a $205 million cash transaction, is anticipated to be accretive to USANA’s 2025 adjusted EBITDA and was financed with $200 million cash on hand with the balance covered by the company’s existing credit facility.
Hiya’s 2024 net sales (ending September 30, 2024) reached $103 million, growing 50% compared to fiscal 2023 with expectations to grow 30% year-over-year. USANA anticipates that this margin, profitability and cash flow generation will improve its long-term growth and drive shareholder value while diversifying USANA’s geographic sales mix and creating a more tax-efficient structure.
“The Hiya brand is a natural fit for USANA and this acquisition represents a key strategic milestone for our business,” said Jim Brown, USANA Health Sciences, Inc President and Chief Executive Officer. “Hiya’s co-founders, Darren Litt and Adam Gillman, have disrupted the children’s health and wellness market by building a high quality, better-for-you brand that aligns with our vision of creating the healthiest family on Earth. This strategic acquisition adds a diversified layer of growth to USANA’s overall business, while maintaining our commitment to our core direct sales business, where we continue to invest in initiatives to drive growth. Notably, this acquisition will allow USANA to reach a broader audience by diversifying distribution channels through Hiya, which we believe will enhance our ability to generate sustainable long-term growth and deliver value for our stakeholders. Darren and Adam will continue to lead Hiya through its next phase of growth. Their leadership and expertise is instrumental to Hiya’s business, which is now part of USANA’s mission and strategic objectives.”
