Nature’s Sunshine Products has announced plans to enter China in a joint venture with Shanghai-based Fosun Pharma. The agreement outlines a multi-channel approach that places Nature’s Sunshine products in Fosun Pharma retail locations across the country and markets the company’s Synergy brand through a direct selling model.
Fosun Pharma will acquire a 15 percent stake in Nature’s Sunshine in a deal valued at just over $46 million. As a part of the agreement, Nature’s Sunshine will appoint one Fosun Pharma director to its board. The investment in Nature’s Sunshine will also fund a special $1.50 per share cash dividend to be paid out at closing.
The company expects that Nature’s Sunshine Hong Kong will drive long-term growth and become a top market within five years, says Chairman and CEO Gregory L. Probert.
“We view this joint transaction as both a testament to the strength of our existing business as well as Fosun Pharma’s confidence in our ability to establish a substantial business in China,” Probert said in a statement. “It marks a significant step forward in our transformation to a global organization with multiple brands and distribution channels.”