USANA Health Sciences announced its acquisition of a 78.8% controlling ownership stake in Hiya Health Products, a leading direct-to-consumer provider of high-quality children’s health & wellness products. The $205 million cash deal closed on December 23, 2024, and is anticipated to be accretive to USANA’s 2025 adjusted EBITDA. For the last year ended September 30, 2024 (unaudited), Hiya generated net sales of $103 million, net income of $19 million, and adjusted EBITDA of $22 million. As of September 30, 2024, Hiya had over 200,000 customers.
The acquisition of Hiya allows USANA to expand its presence in the children’s health & wellness market through Hiya. For the last year, which ended September 30, 2024, Hiya’s net sales of $103 million grew 50% as compared to fiscal year 2023. For fiscal year 2025, the company anticipates Hiya’s net sales growth to approach 30% year-over-year.
Hiya provides a compelling subscription model with attractive margins, profitability, and cash flow generation, which is expected to enhance the Company’s ability to deliver long-term growth and drive shareholder value. And Hiya’s domestic profitability diversifies USANA’s geographic sales mix and is anticipated to lower the Company’s consolidated effective tax rate and create a more tax-efficient structure.
Over the next few years, USANA and Hiya will work together to take advantage of identified synergies, assets, and expertise across both companies to create efficiencies and accelerate growth and profitability. For example, Hiya has opportunities to leverage USANA’s significant manufacturing and international expansion expertise. Similarly, USANA may leverage Hiya’s market data insights, marketing expertise, and children-focused products within its direct sales channel.
Hiya currently holds a leading position in children’s Vitamins, Minerals & Supplements brand sales in the United Statesⁱ and has a clear pathway and strong growth strategy to become the #1 children’s wellness platform through new product introductions, channel expansion, and geographic expansion. And Hiya’s commitment to being the most trusted and preferred brand for wellness products in the 0-18 age range is an additive category for the company and complements USANA’s vision of the healthiest family on Earth.
The deal meaningfully expands and diversifies the Company’s revenue mix. Hiya’s net sales are generated in the United States through its direct-to-consumer subscription model, and the company plans to enter other sales channels. This will enable USANA to reach a broader audience of health-conscious consumers and grow the enterprise’s overall customer base.
The company made an initial cash investment of approximately $205 million (subject to customary closing and post-closing purchase price adjustments) in exchange for a 78.8% ownership stake in Hiya.
The transaction structure includes a put/call feature that allows USANA to acquire the remaining rollover equity at a pre-negotiated valuation scale based on Hiya’s financial performance.
The deal was financed with $200 million in cash, with the balance covered by the Company’s existing credit facility.
BofA Securities acted as the exclusive financial advisor to the company in connection with the transaction. Wilson Sonsini Goodrich & Rosati served as the company’s legal advisor. William Hood & Company acted as the exclusive financial advisor to Hiya. Bodman acted as Hiya’s legal advisor.
KEY QUOTES:
“The Hiya brand is a natural fit for USANA and this acquisition represents a key strategic milestone for our business. 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.”
- Jim Brown, President and Chief Executive Officer of USANA Health Sciences
“Today represents an exciting chapter for Hiya and we are thrilled to join the USANA family. As parents ourselves, we recognized that so many wellness companies did not prioritize our children’s health interests, so we created Hiya to give families the very best in clean, honest nutrition. With the help of USANA’s extensive capabilities, support and international expertise, we can now extend that commitment to create healthy products for more families in more countries. USANA and Hiya share a deep commitment to improving the lives of families everywhere by providing the best nutritional products possible, and we look forward to continuing this exciting journey as part of USANA.”
- Darren Litt, co-founder and CEO of Hiya
