Watch CBSN Live

Vitamin Giant GNC Plans IPO

GNC, the retail vitamin company, is planning a $350 million initial public offering, according to a recent filing with the Securities & Exchange Commission.

The company did not say how many shares it plans to sell or at what price per share.

The underwriters have a 30-day option to buy more shares. Goldman Sachs & Co. and JPMorgan Securities LLC are joint representatives of the underwriters.

GNC Acquisition Holdings Inc. plans to use the proceeds from the offering for working capital and general corporate purposes.

Last year, GNC's net income totaled $69.5 million on $1.71 billion in revenue. For the six month ended June 30, net income rose to $51.1 million from $37.4 million in the year-ago period. Revenue increased by nearly 6 percent to $920.7 million from $872.3 million.

Sales at stores opened at least one year rose 3 percent in the first six months of this year, compared with a 1 percent growth rate in the same period last year.

The company said in its Tuesday filing that growth plans include increasing store square footage, expanding internationally and improving its e-commerce business.

GNC is owned by an affiliate of Ontario Teachers' Pension Plan Board, which bought the store chain in 2007 for $1.65 billion from private investment group Apollo Management LP.

Following the IPO, the group will hold an undisclosed interest in GNC. It will control the company's affairs and policies, including the election of directors, mergers or sales of assets and other significant transactions, according to the filing.

This isn't the first time GNC has filed for an IPO. Apollo tried to take GNC public twice, but withdrew because of faltering sales and unfavorable market conditions. Apollo bought GNC in 2003 for $750 million from Dutch firm Numico.

A GNC spokesman declined to comment further on the planned IPO because the company is in its registration period.