Xiwang Investment Company Purchases Iovate (MuscleTech/TrueGRIT/SixStar/EPIQ)

VaughnTrue

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Xiwang Foodstuffs Company Ltd. has agreed to buy Canadian nutrition supplement maker Iovate Health Sciences International Inc., according to statements from both companies.

The deal values Iovate at $730 million, Xiwang said in a filing with the Shenzhen Stock Exchange Monday. Xiwang outbid a number of other Chinese buyout firms that had made offers for the business, people familiar with the matter said earlier.

Chinese consumers’ demand for dietary supplements is rising as higher incomes, and problems such as obesity and diabetes, drive a desire for healthier lifestyles. Iovate owns fitness supplement brands MuscleTech and Six Star Pro Nutrition, and has partnerships with Wal-Mart Stores Inc. and Walgreens Boots Alliance Inc., according to its website.

Iovate said it would keep its North American headquarters in Oakville, Canada, all key executives as well as 330 existing employees in place.

Houlihan Lokey Inc. acted as financial adviser to Iovate on the transaction, expected to close later this year. HSBC Holdings Plc advised Xiwang.
 

alvin1

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Dam better have my kid learning mandarin!
 
TrainerTone

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Saw this coming a mile away
 
Daycrawler

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It makes a difference, did they buy them or did they buy a majority stake in the company?

Can't find it. Anyone know their revenue for 2015? I'm curious what multiplier they got.

SaaS companies traditionally get a 8-12x multipler on the ARR.

Edit: Saw one site est 125M so that's about a 5x multiplier
 
GreekTheBrick

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Am I the only one that thinks $730 million are low?
 
Daycrawler

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Am I the only one that thinks $730 million are low?
Depends on their revenue and actual profit.

If they had a 5x multiplier on revenue that seems pretty damn generous.

Edit: I'd also wager they have a ton of competition and the margins aren't excellent. So add in that the market will only get more competitive, low barrier to entry it probably was a good deal.

They're not a tech company with an overinflated valuation.
 
smith_69

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Saw this coming a mile away
why?

you mean the company who is taking over or the sale of the companies, I believe that's what you meant
 
smith_69

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