PROVO, Utah - Nu Skin Enterprises Inc. (NYSE: NUS) has completed a significant transaction through its subsidiary, Rhyz Inc., selling its Mavely affiliate marketing technology platform to Later, a company backed by Summit Partners. The deal, valued at approximately $250 million, includes both cash and a minority equity stake in the merged Later/Mavely entity. According to InvestingPro data, this transaction value represents over 75% of Nu Skin’s current market capitalization of $326.1 million, with analysis indicating the stock is currently undervalued.
This strategic move is expected to provide Nu Skin with enhanced capabilities as it continues to develop its beauty, wellness, and lifestyle ecosystem. The company maintains strong financial fundamentals with impressive gross profit margins of 74.4% and a healthy current ratio of 1.93, indicating solid liquidity. Ryan Napierski, Nu Skin president and CEO, remarked on the synergistic value the deal brings, emphasizing the company’s commitment to innovation and growth within its core businesses.
The transaction reflects a substantial return on Nu Skin’s investment in Mavely, which it acquired in 2021, amounting to roughly five times the original investment. The proceeds are slated for debt reduction and funding further innovation. Additionally, Nu Skin plans to leverage its stronger balance sheet to repurchase stock, aiming to deliver shareholder value.
Evercore Group LLC and Simpson Thacher & Bartlett LLP served as Nu Skin’s exclusive financial advisor and legal counsel, respectively, in this transaction.
Nu Skin, recognized for its integrated beauty and wellness products and dynamic affiliate marketing platform, operates globally in nearly 50 markets. The company has maintained dividend payments for 24 consecutive years, demonstrating long-term financial stability. Rhyz Inc., established in 2018, is a collection of consumer, technology, and manufacturing companies focusing on the beauty, wellness, and lifestyle sectors. For detailed analysis and additional insights, investors can access comprehensive research reports on InvestingPro, which covers over 1,400 US stocks including Nu Skin.
The information in this article is based on a press release statement from Nu Skin Enterprises Inc.
In other recent news, Nu Skin Enterprises has been under the analyst’s lens, with DA Davidson reducing its price target for the company from $11 to $7 while maintaining a neutral rating. This adjustment follows Nu Skin’s recent report of a weaker-than-expected performance for Q3 2024 and a downward revision in its full-year guidance. Despite a recognized slowdown in the latter half of 2024, DA Davidson analysts anticipate a potential deceleration in the revenue decline for 2025, buoyed by expected growth in Nu Skin’s manufacturing business.
The company boasts strong fundamentals, including a gross profit margin of 74.4% and a healthy current ratio of 1.93. However, the timeline for stabilization of Nu Skin’s core business remains uncertain, with DA Davidson noting that current cost-saving measures might not offset the negative impact of an unfavorable geographic sales mix.
The firm has also projected estimates for 2026, basing the new price target on a multiple of four times the estimated EBITDA for that year, expected to be $151 million. These are some of the recent developments surrounding Nu Skin Enterprises.
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