Chinese company Hayao to become largest GNC investor
A Chinese pharmaceutical company is poised to become the largest shareholder in GNC Holdings Inc., the Pittsburgh company said.
Under the terms of the agreement, announced Tuesday, Harbin Pharmaceutical Group Holding Co. Ltd., which goes by the name Hayao, will invest $300 million in GNC.
GNC and Hayao will form a joint venture to manufacture, market, sell and distribute GNC-branded products in China.
“As a recognized leader in China, Hayao is an ideal partner as we look to leverage the strength of the GNC brand and to capitalize on the demand for nutritional supplements in China,” Ken Martindale, GNC's CEO, said in a statement.
The deal is scheduled to close during the second half of this year. GNC's board of directors will be expanded to include five members from Hayao.
Suzanne Elliott is a Tribune-Review staff writer. She can be reached at 412-871-2346 or Twitter@41Suzanne.