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PITTSBURGH — Specialty retailer GNC on Tuesday announced it has agreed to acquire LuckyVitamin.com, an online discount retailer of branded nutritional supplements.
The acquisition is being funded with cash on hand, and is expected to close within 30 days, subject to customary closing conditions, GNC stated.
Terms of the deal were not disclosed.
Following the acquisition, GNC.com — GNC's existing e-commerce platform — and LuckyVitamin.com will continue to operate as separate businesses, each with its own product offerings and target customers.
"LuckyVitamin.com is a true Internet pioneer in the health and wellness industry and has built a strong online brand and business as a discount retailer," GNC president and CEO Joe Fortunato said. "LuckyVitamin.com creates a perfect opportunity for GNC to leverage our existing capabilities, provides synergies to strengthen the competitive position of LuckyVitamin.com and gain market share in the fast-growing discount e-commerce channel," he said.
"This acquisition will allow us to participate in the online nutritional discount market without compromising our GNC Live Well brand or the market positioning of our successful GNC.com business," added Jeffrey Hennion, GNC's EVP and chief marketing officer and e-commerce. "The combination of GNC.com's premium branding, content and product assortment with LuckyVitamin.com's competitive offering, best-in-class functionality and customer service advances GNC's position in the e-commerce channel and leverages the strengths of both companies."
LuckyVitamin.com, founded in 2004, is based in Norristown, Pa. It generated approximately $40 million in revenue for the last twelve months. GNC expects the acquisition to be accretive, beginning in 2012. The earnings impact in 2011 is expected to be neutral, as positive EBITDA contribution is offset by transaction-related expenses.