USANA Health Sciences Inc (NYSE: USNA), a provider of high-quality nutritional supplements, functional foods and personal care products, on Monday announced the acquisition of a 78.8% controlling stake in Hiya Health Products, LLC for USD205m in cash, in a transaction that closed on 23 December 2024.

Hiya, a leading direct-to-consumer provider of high-quality children's health and wellness products, generated USD103m in net sales, USD19m in net income and USD22m in adjusted EBITDA for the twelve months ending 30 September 2024.

The acquisition aligns with USANA's strategy to expand its presence in the children's health sector and enhance its direct-to-consumer capabilities, particularly through Hiya's successful subscription model. Hiya's sales grew 50% in 2024, and USANA anticipates continued strong growth, projecting a 30% year-over-year increase in 2025.

Hiya's business model is expected to diversify USANA's revenue mix, increase profitability and enhance tax efficiency. The companies plan to leverage their combined strengths to accelerate growth, with Hiya benefiting from USANA's manufacturing and international expansion expertise.

The transaction, which was financed with USANA's cash reserves and existing credit facility, includes a put/call feature for the future acquisition of the remaining equity in Hiya. BofA Securities acted as the exclusive financial advisor to USANA in the transaction.