Herbalife Increases U.S. Manufacturing Capacity
California-based nutrition company enters into agreement to
purchase manufacturing facility in Winston Salem, North Carolina
LOS ANGELES--(BUSINESS WIRE)--
Herbalife Ltd. (NYSE: HLF), a global nutrition company, announced today
that it entered into a definitive agreement to purchase a manufacturing
facility in Winston Salem, North Carolina. This purchase further expands
Herbalife's global manufacturing capacity and is in line with the
company's stated strategy to increase self-manufacturing for its
products.
The agreement is based upon a cash purchase of $22.2 million and
includes incentives from Winston Salem, Forsyth County and the state of
North Carolina. The receipt of these incentives, coupled with an
existing manufacturing facility and the availability of quality labor
force in the Triad region, were key criteria that the company considered
upon selecting this location above other cities in the southeast.
In addition to the building purchase, Herbalife plans to invest in
excess of $100 million on machinery & technology, as well as a complete
retro-fitting of the existing facility to ensure it is in full
compliance with U.S. Good Manufacturing Practices (cGMPs) for dietary
supplements and food products. The facility will employ approximately
500 new positions when it reaches full production and it will
manufacture Herbalife's nutritional powders and liquids for the North
American and other markets around the world.
"This acquisition is part of the ongoing execution of our previously
stated ‘seed to feed' strategy — vertically integrating our supply chain
to give us even greater control of our products at every stage of the
process and increasing our ability to meet the increased product needs
of our independent distributors and their customers around the world,"
said Rich Goudis, chief operating officer. "We are thankful to Governor
Perdue, who played a key role in our decision to locate our operations
in North Carolina and we are excited about the opportunities this new
facility offers to both our business and the local economy."
It is anticipated that the deal will close in late December 2012,
subject to the completion of due diligence on the property.
About Herbalife Ltd.
Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells
weight-management, nutrition, and personal care products intended to
support a healthy lifestyle. Herbalife products are sold in more than 80
countries to and through a network of independent distributors. The
company supports the Herbalife Family Foundation and its Casa Herbalife
program to help bring good nutrition to children. Herbalife's website
contains information about Herbalife, including financial and other
information for investors at http://ir.Herbalife.com.
The company encourages investors to visit its website from time to time,
as information is updated and new information is posted.
Herbalife Ltd.
Media Contact:
Julian
Cacchioli
VP, Worldwide Corp. Comm.
213-745-0519
or
Investor
Contact:
Amy Greene
VP, Investor Relations
213-745-0504
Source: Herbalife Ltd.
News Provided by Acquire Media
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