Blyth (BTH) Ramps on ViSalius IPO Filing; Will Keep Majority Stake
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Price: $14.66 --0%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 1.2%
EPS Growth %: -81.6%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 1.2%
EPS Growth %: -81.6%
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Typically not a huge mover, Blyth (NYSE: BTH) is ripping Thursday following the announcement its ViSalius unit filed for an IPO of its common stock.
Blyth will still have a majority stake in ViSalius following the IPO, which has a tentative price of $175 million.
Blyth took a 43.6 percent interest in ViSalus in October 2008 for total transaction costs of $14 million. The company then bought another 13.9 percent in April 2011 for $2.5 million and brought that up to 72.7 percent in January 2012 for pproximately $22.5 million in cash and the issuance of 681,324 unregistered shares of the Company's common stock valued at $14.6 million, of which 340,662 shares may not be sold or transferred prior to January 12, 2014. Total investment is about $59.8 million (following an additional $6.2 million payment in April 2012 on 2011 EBITDA adjustment).
Finally, from a recent 10-Q filing: "The Company intends to and may be required to purchase the remaining interest in ViSalus to increase its ownership to 100%. The fourth phase and final purchase of ViSalus is conditioned upon ViSalus meeting its original purchase agreement's 2012 operating target. The Company has the option, but is not required, to acquire the remaining interest in ViSalus if it does not meet this operating target. However, as of June 30, 2012, the operating target for 2012 requiring the additional purchase is anticipated to be met. If ViSalus meets its current projected 2012 EBITDA forecast, the total expected redemption cost of the fourth and final phase will be approximately $271 million to be paid in 2013. The purchase price of the additional investment is equal to a multiple of ViSalus's EBITDA, exclusive of certain unusual items. The payment, if any, may be funded in part using existing cash balances from both domestic and international sources, expected future cash flows from operations and the issuance of common stock and may require the Company to obtain additional sources of external financing."
Blyth is up over 19 percent on the session.
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Blyth will still have a majority stake in ViSalius following the IPO, which has a tentative price of $175 million.
Blyth took a 43.6 percent interest in ViSalus in October 2008 for total transaction costs of $14 million. The company then bought another 13.9 percent in April 2011 for $2.5 million and brought that up to 72.7 percent in January 2012 for pproximately $22.5 million in cash and the issuance of 681,324 unregistered shares of the Company's common stock valued at $14.6 million, of which 340,662 shares may not be sold or transferred prior to January 12, 2014. Total investment is about $59.8 million (following an additional $6.2 million payment in April 2012 on 2011 EBITDA adjustment).
Finally, from a recent 10-Q filing: "The Company intends to and may be required to purchase the remaining interest in ViSalus to increase its ownership to 100%. The fourth phase and final purchase of ViSalus is conditioned upon ViSalus meeting its original purchase agreement's 2012 operating target. The Company has the option, but is not required, to acquire the remaining interest in ViSalus if it does not meet this operating target. However, as of June 30, 2012, the operating target for 2012 requiring the additional purchase is anticipated to be met. If ViSalus meets its current projected 2012 EBITDA forecast, the total expected redemption cost of the fourth and final phase will be approximately $271 million to be paid in 2013. The purchase price of the additional investment is equal to a multiple of ViSalus's EBITDA, exclusive of certain unusual items. The payment, if any, may be funded in part using existing cash balances from both domestic and international sources, expected future cash flows from operations and the issuance of common stock and may require the Company to obtain additional sources of external financing."
Blyth is up over 19 percent on the session.
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