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Exhibit 99.1
ARES MANAGEMENT LLC & ONTARIO
TEACHERS’ PENSION PLAN
TO ACQUIRE GNC
Pair Purchasing The Largest Global
Specialty Retailer of Health and Wellness Products
Los Angeles, CA. February 9, 2007 — The private
investment groups of each of Ares Management LLC ("Ares
Management") and the Ontario Teachers’ Pension Plan announced
today that they have signed a definitive agreement to acquire GNC
Parent Corporation, the parent company of General Nutrition
Centers, Inc. ("GNC" or the "Company"), which is currently
controlled by an affiliate of Apollo Management, L.P. ("Apollo").
The total enterprise value for the transaction is $1.65 billion,
subject to certain adjustments.
GNC, headquartered in Pittsburgh, Pa., is the largest global
specialty retailer of nutritional products, vitamin, mineral,
herbal and other specialty supplements and sports nutrition, diet
and energy products. GNC has more than 4,800 retail locations
throughout the United States (including more than 1,000 franchise
and 1,200 Rite Aid store-within-a-store locations) and franchise
operations in 46 international markets. The Company — which
is dedicated to helping consumers Live Well — also offers
products and product information online at www.gnc.com. For the
12 months ending September 30, 2006, the Company
generated sales of approximately $1.5 billion.
"We are excited to once again be partners with Teachers’
Private Capital in this transaction and are looking forward to
working with GNC’s senior management team. GNC is a
market-leading retail platform that will be a terrific addition to
our existing investment portfolio of retail and consumer product
companies," said David Kaplan, a Senior Partner at Ares Management.
"Furthermore, we share management’s vision for the Company
and believe that the business is well positioned for future
growth."
Jim Leech, Senior Vice-President of Teachers’ Private
Capital agreed, adding: "The opportunity to acquire GNC, a leading
retailer of health and wellness products, complements our growing
portfolio of consumer brands. We are excited to work with the
Company’s strong management team and Ares Management to
continue to grow the brand."
Commenting on the new ownership, Joe Fortunato, GNC’s
President and CEO, said, "We are looking forward to our partnership
with Ares Management and Teachers’ Private Capital. Their
strong, committed financial sponsorship will allow GNC to continue
its track record of growth and partnership with our franchisees,
customers and suppliers."
Andy Jhawar, a Senior Partner at Apollo added, "We would very
much like to thank Joe Fortunato, the rest of the management team
and the employees of GNC for their efforts over the last several
years. GNC is a terrific company with one of the best brand names
in the industry and we know that GNC will be in great hands with
its new owners."
Apollo, through certain of its affiliates, owns approximately
97.0% of the shares of common stock of GNC and, according to the
terms of the GNC Stockholders’ Agreement, is entitled to vote
100% of the common stock. Apollo voted today to approve the merger
and the merger agreement.
Ares Management and Teachers’ Private Capital were
represented by Proskauer Rose LLP. GNC was represented by Gardere
Wynne Sewell LLP as lead counsel and by Morgan Lewis LLP as special
counsel. Goldman, Sachs & Co. and J.P. Morgan Securities Inc.
are also serving as financial advisors to GNC.
About Ares Management
Ares Management is a private investment firm with
approximate
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