USANA Health Sciences Inc., which makes nutritional and weight-management products, said Monday that it has acquired BabyCare Ltd., a China-based company that develops and sells infant formula and other nutritional products.
USANA purchased BabyCare for approximately $62.7 million, including $45 million in cash and 400,000 shares of USANA stock, which closed Monday at $44.29.
Beijing-based BabyCare, which was founded in 1999 by American entrepreneur Matthew Estes, has operations in 21 cities. The company has service centers -- where families can attend classes and buy nutritional supplements -- as well as a commission-based direct-sales force.
USANA CEO Dave Wentz said BabyCare will give his company valuable knowledge and direct-sales capability as it enters
USANA plans to let BabyCare continue operating as a stand-alone company for 18 to 24 months. Eventually, USANA wants to establish and grow its own brand in
Wentz said BabyCare has "pristine" manufacturing practices. The company wasn't involved in a 2008 scandal in which more than 300,000 children were sickened and six died after drinking Chinese infant formula tainted by the industrial chemical melamine.
USANA shares fell 6 cents in after-hours trading.