A group led by USANA Health Sciences Inc. chairman and CEO Myron Wentz on Monday reiterated its offer to buy the company's outstanding shares, despite an announcement Friday by a committee of the company's board that the $26-per-share offer was inadequate.
Gull Holdings Ltd., controlled by Wentz, and Unity Acquisition Corp. on Monday reaffirmed their offer for USANA, saying that USANA's earnings guidance "further solidifies Gull's confidence that the financial conditions related to the previously arranged financing for the transaction will be satisfied."
The company's preliminary earnings per share for the 2008 second quarter were lower than the year-earlier quarter, but preliminary net sales were above the year-earlier period. Both were improvements over the 2008 first-quarter figures, Gull said. On Friday, a special committee to the USANA board of directors urged a rejection of the offer, after unanimously determining it to be "inadequate and not in the best interests of USANA's shareholders." That determination, it said, came after considering the offer, the company's "prospects and value," a financial adviser's opinion and "other relevant facts and information" spelled out in an amendment filed with the Securities and Exchange Commission.
USANA develops and manufactures nutritional, personal-care and weight-management products. Its stock slipped nearly 7 percent Monday, falling $1.97 to close at $26.37. During the past year, the price has ranged from $18.18 to $51.50.