Seeking Alpha
Profile| Send Message| ()  

GNC Holdings, Inc. (GNC),a health supplements retailer, priced its IPO on March 31st, 2011, within expected range at $16 per share, giving a first-day return of 4.7%.

Business Overview (from prospectus)

We are the leading global specialty retailer of health and wellness products, including vitamins, minerals and herbal supplements ("VMHS") products, sports nutrition products and diet products. Our diversified, multi-channel business model derives revenue from product sales through domestic company-owned retail stores, domestic and international franchise activities, third-party contract manufacturing, e-commerce and corporate partnerships. We believe that the strength of our GNC brand, which is distinctively associated with health and wellness, combined with our stores and website, give us broad access to consumers and uniquely position us to benefit from the favorable trends driving growth in the nutritional supplements industry and the broader health and wellness sector. Our broad and deep product mix, which is focused on high-margin, premium, value-added nutritional products, is sold under our GNC proprietary brands, including Mega Men®, Ultra Mega®, GNC WELLbeING®, Pro Performance®, Pro Performance® AMP and Longevity Factors™, and under nationally recognized third-party brands.

Offering: 22.5 million shares (inclusive of 6.5 million by selling stockholders) at $16 per share.

Lead Underwriters: Goldman, Sachs & Co. (GS), J.P. Morgan (JPM), Deutsche Bank Securities (DB), Morgan Stanley (MS)

Financial Highlights:

Net revenues increased 6.7% to $1,822.2 million for the year ended December 31, 2010 compared to $1,707.0 million for the same period in 2009... Consolidated cost of sales increased 5.7% to $1,179.9 million for the year ended December 31, 2010 compared to $1,116.4 million for the same period in 2009...Consolidated SG&A expenses increased 5.1% to $430.2 million, for the year ended December 31, 2010 compared to $409.7 million for the same period in 2009...Consolidated net income increased $27.1 million to $96.6 million for the year ended December 31, 2010 compared to $69.5 million for the same period in 2009...

Competitors

The U.S. nutritional supplements retail industry is a large, highly fragmented and growing industry, with no single industry participant accounting for a majority of total industry retail sales. Competition is based primarily on price, quality and assortment of products, customer service, marketing support and availability of new products. In addition, the market is highly sensitive to the introduction of new products.

Additional Resources:

Source: GNC Holdings Prices IPO Within Range