Herbalife Ltd. Reaches Agreement in Principle to Form Joint Venture with China’s Tasly Holding Group
February 23 2017 - 4:05PM
Business Wire
Herbalife Ltd. (NYSE: HLF), a global nutrition company, today
announced it has reached an agreement in principle to form a joint
venture with Tasly Holding Group, a leading Traditional Chinese
Medicine (TCM) health products and services corporation. The joint
venture would develop and commercialize high-quality consumer
health products based on Tasly’s deep portfolio of proprietary
formulations, patents, know-hows, and clinical studies by
leveraging the Herbalife Nutrition scientific, regulatory and
commercial development expertise to bring products to a global
market through the Herbalife Nutrition distributor network. The
proposed joint venture furthers the Herbalife Nutrition business
plan to expand its product range globally.
“We are honored to work with Tasly, which is well regarded for
its premium TCM products and ingredients,” said Michael O. Johnson,
chairman and CEO, Herbalife. “The Herbalife Nutrition seed to feed
philosophy ensures the quality and traceability of our ingredients
from cultivation to the final delivery of products to customers,
and Tasly has patents, clinical research, and traceability of key
ingredients, making this a natural partnership.”
Dr. Henry Sun, Vice-Chair of Tasly Holding Group, said, “We
believe the combination of Tasly’s pharmaceutical development
experience and experts, clinical research skills and network along
with the two firms' high-end quality control standards, will bring
the best evidence-based products to consumers.”
Tasly manages a broad spectrum of leading pharmaceutical,
consumer products, healthcare services and distribution channels in
China. As a pioneer of TCM modernization, Tasly, through
innovations in standards and technologies, has created a
manufacturing and development process and set up a comprehensive,
standardized and digital system which produces high-quality TCM
products.
The joint venture is expected to be finalized within the next 60
days.
About Herbalife:
Herbalife is a global nutrition company that has been changing
people's lives with great products since 1980. Our nutrition,
weight-management, energy and fitness and personal care products
are available exclusively to and through dedicated Herbalife
Independent Members in more than 90 countries. We are committed to
fighting the worldwide problems of poor nutrition and obesity by
offering high-quality products, one-on-one coaching with an
Herbalife Member and a community that inspires customers to live a
healthy, active life.
We support the Herbalife Family Foundation (HFF) and
its Casa Herbalife programs to help bring good nutrition
to children in need. We also sponsor more than 190 world-class
athletes, teams and events around the globe,
including Cristiano Ronaldo, the LA Galaxy and
champions in many other sports.
The company has over 8,000 employees worldwide, and its shares
are traded on the New York Stock Exchange (NYSE: HLF)
with net sales of $4.5 billion in 2015. The Herbalife
website contains a significant amount of financial and other
information about the company at http://ir.Herbalife.com. The
company encourages investors to visit its website from time to
time, as information is updated and new information is posted. To
learn more, visit Herbalife.com or IAmHerbalife.com.
About Tasly:
Tasly Holding Group Co., Ltd. was founded in 1994 and is based
in Tianjin, China. As a high-tech enterprise group, with the core
of the pharmaceutical operations, Tasly's business includes Modern
TCM, Chemical Medicine, Bio-pharmaceuticals, and high-quality
consumer health products covering Scientific Research, Cultivation,
Extraction, Formulation and Marketing. Tasly has created
industrialized platform for TCM innovative development and
intelligent manufacturing. Tasly has an extensive marketed product
line and pipeline supported by strong patent portfolio including
more than one thousand patents. The company has over 18,000
employees worldwide. The Tasly website contains a significant
amount of information about the company and its products at
http://www.tasly.com/en_web/.
FORWARD-LOOKING STATEMENTS
This earnings release contains “forward-looking statements”
within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Although we believe that
the expectations reflected in any of our forward-looking statements
are reasonable, actual results could differ materially from those
projected or assumed in any of our forward-looking statements. Our
future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and to
inherent risks and uncertainties, such as those disclosed or
incorporated by reference in our filings with the Securities and
Exchange Commission. Important factors that could cause our actual
results, performance and achievements, or industry results to
differ materially from estimates or projections contained in our
forward-looking statements include, among others, the
following:
- our relationship with, and our ability
to influence the actions of, our Members;
- improper action by our employees or
Members in violation of applicable law;
- adverse publicity associated with our
products or network marketing organization, including our ability
to comfort the marketplace and regulators regarding our compliance
with applicable laws;
- changing consumer preferences and
demands;
- the competitive nature of our
business;
- regulatory matters governing our
products, including potential governmental or regulatory actions
concerning the safety or efficacy of our products and network
marketing program, including the direct selling market in which we
operate;
- legal challenges to our network
marketing program;
- the consent order entered into with the
FTC, the effects thereof and any failure to comply therewith;
- risks associated with operating
internationally and the effect of economic factors, including
foreign exchange, inflation, disruptions or conflicts with our
third party importers, pricing and currency devaluation risks,
especially in countries such as Venezuela;
- uncertainties relating to
interpretation and enforcement of legislation in China governing
direct selling;
- our inability to obtain the necessary
licenses to expand our direct selling business in China;
- adverse changes in the Chinese
economy;
- our dependence on increased penetration
of existing markets;
- contractual limitations on our ability
to expand our business;
- our reliance on our information
technology infrastructure and outside manufacturers;
- the sufficiency of trademarks and other
intellectual property rights;
- product concentration;
- our reliance upon, or the loss or
departure of any member of, our senior management team which could
negatively impact our Member relations and operating results;
- U.S. and foreign laws and regulations
applicable to our international operations;
- uncertainties relating to the United
Kingdom’s vote to exit from the European Union;
- restrictions imposed by covenants in
our credit facility;
- uncertainties relating to the
application of transfer pricing, duties, value added taxes, and
other tax regulations, and changes thereto;
- changes in tax laws, treaties or
regulations, or their interpretation;
- taxation relating to our Members;
- product liability claims;
- our incorporation under the laws of the
Cayman Islands;
- whether we will purchase any of our
shares in the open markets or otherwise; and
- share price volatility related to,
among other things, speculative trading and certain traders
shorting our common shares.
We do not undertake any obligation to update or release any
revisions to any forward-looking statement or to report any events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170223006511/en/
Herbalife Ltd.Jen Butler, 213-745-0420VP, Media
Relationsjenb@herbalife.comorInvestor Contact:Alan Quan,
213-745-0541VP, Investor Relationsalanqu@herbalife.com
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