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LOS ANGELES - Herbalife Ltd. (NYSE: HLF), a global health and wellness company with annual revenue of nearly $5 billion, has announced plans to expand its portfolio through the acquisition of Pro2col Health LLC, Pruvit Ventures, Inc., and a majority stake in Link BioSciences Inc. According to InvestingPro analysis, the company appears undervalued at its current market capitalization of $841 million, with a notably low P/E ratio of 3.3. The transactions, which are expected to close in the second quarter of 2025, signal Herbalife’s strategic move to enhance its personalized nutrition offerings and modernize its business model.
Pro2col, a digital application company, specializes in personalized nutrition recommendations based on individual biometrics, while Link BioSciences focuses on manufacturing with proprietary technology that processes biometrics and DNA to create customized supplements. Herbalife’s acquisition of these companies aims to provide its distributors with new tools for customer base expansion through personalized health and wellness solutions.
The beta version of Pro2col’s technology platform is slated for release to select Herbalife distributors in the U.S. during the third quarter of 2025, with a full launch expected in the fourth quarter and international expansion starting in 2026.
Additionally, Herbalife will acquire Pruvit, a leader in the direct-selling market for patented ketone supplements. Pruvit will operate independently for up to two years during the transition period, after which Herbalife plans to introduce ketone products. The acquisitions, costing between $25 million and $30 million with potential additional payments based on future performance, will add a new product category to Herbalife’s health and wellness offerings. The company’s strong financial health score of "GOOD" from InvestingPro suggests it’s well-positioned to execute these strategic investments, with the stock showing impressive momentum through a 27% gain year-to-date.
Herbalife is also deepening its relationship with soccer icon Cristiano Ronaldo, who has been a partner for over a decade. Ronaldo will serve as an advisor for the development of the Pro2col platform, reflecting a shared commitment to high-quality nutrition and wellness solutions.
These strategic moves underscore Herbalife’s ambition to become the premier health and wellness platform, as stated by Herbalife President and incoming CEO Stephan Gratziani. The company believes these investments will propel it into a new chapter of growth by leveraging technological advancements in personalized health and wellness. For deeper insights into Herbalife’s valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available as part of their coverage of over 1,400 US stocks.
This news is based on a press release statement from Herbalife Ltd.
In other recent news, Herbalife Ltd. reported strong financial results for the fourth quarter of 2024, with earnings per share (EPS) of $0.36, significantly exceeding the forecasted $0.11. The company’s revenue reached $1.2 billion, surpassing expectations by $10 million, showcasing effective cost management and operational efficiency. Moody’s Ratings has upgraded Herbalife’s outlook to stable from negative, citing improved leverage and positive trends in distributor recruitment. This change reflects Herbalife’s focus on debt reduction and better operating margins, contributing to a stronger free cash flow. Herbalife redeemed $65 million of unsecured notes due in September 2025, enhancing its liquidity position, with $415 million in cash and an undrawn $400 million revolver. Mizuho Securities raised Herbalife’s stock target to $8.00, maintaining a Neutral rating, following notable distributor growth and positive revenue guidance for 2025. The firm’s adjusted EBITDA forecasts for FY25 and FY26 were slightly revised due to foreign exchange headwinds. Despite challenges in sales volumes, Herbalife’s strategic actions and global diversification continue to support its credit profile.
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