Blyth, Inc. Explained

Blyth Incorporated
Type:Private
Location City:Greenwich, Connecticut
Location Country:U.S.
Key People:Robert B. Goergen Sr. (Founder, Chairman and CEO)
Industry:Home accessories
Revenue: US$ 1.179 billion (2012)[1]
Operating Income: US$ 84.566 million (2012)
Net Income: US$ 10.046 million (2012)
Assets: US$ 321.604 million (2012)
Equity: US$ 58.804 million (2012)
Num Employees:1,700 (Dec 2012)
Owner:Carlyle Group

41.0167°N -73.6489°W

Blyth, Inc. is a Greenwich, Connecticut based marketing and manufacturing company that sells personal and decorative products. In 2001, it was the largest candlemaker in the United States. Subsidiaries include the multi-level marketing companies PartyLite and Visalus.

History

On May 13, 2002, Blyth announced that it has acquired all of the membership interest in CBK, Ltd., LLC, a designer and marketer of giftware and home decor, sold under the CBK brand.[2] Blyth purchased the interests in CBK for total cash consideration of approximately $49.5 million. Midwest CBK was sold to MVP Group International in 2011.[3] CBK was to remain obligated on its indebtedness, including approximately $4.8 million of long-term debt.[2]

In 2012 Blyth sold the brand Sterno, which it had acquired in 1997.[4] [5]

In 2015, Blyth was acquired by the private equity firm Carlyle Group.[6] Subsidiary Silver Star Brands was sold to Crosby Rock, leaving Blyth with PartyLite.[7]

ViSalus

See main article: ViSalus.

In 2008 Blyth began a multi-stage takeover of ViSalus, a multi-level marketing company which sells nutritional supplements and energy drinks.[8] [9] In the first stage of the takeover Blyth purchased a 43.6% equity interest for $14.0 million.[10] [11] In 2011 Blyth invested an additional $2.5 million and increasing their ownership share to 57.5%.[12]

By August 2012 Blyth owned a 73% share of Visalus and planned a spin off of the company in an initial public offering. In September 2012, Moody's Investors Service downgraded Blyth's credit from "stable" to "negative,"[13] Blyth stated that ViSalus's growth was not properly valued, and Blyth withdrew the IPO citing uncertain market conditions.[14]

In September 2014, ViSalus' founders and select stockholders arranged to buy back control of the company from Blyth. Blyth remained an equity holder with 10% of ViSalus's stock.[15] [16] [17] The transaction eliminated Blyth's obligation to pay the co-founders $143.2 million as part of the 2008 acquisition. At the time of the transaction, ViSalus' earnings and revenue had declined from a high-point in 2012, and the company had been operating at a loss for 2013 and the first two quarters of 2014.[16]

External links

Notes and References

  1. Web site: Blyth, Inc., Form 10-K, Annual Report, Filing Date Mar 14, 2013 . secdatabase.com . April 26, 2013 . October 17, 2013 . https://web.archive.org/web/20131017152114/http://app.quotemedia.com/data/downloadFiling?webmasterId=101533&ref=8798648&type=PDF&symbol=BTH&companyName=BLYTH+Inc.&formType=10-K&formDescription=Annual+report+with+a+comprehensive+overview+of+the+company&dateFiled=2013-03-14 . live .
  2. Web site: Blyth, Inc., Form 8-K, Current Report, Filing Date May 15, 2002 . secdatabase.com . Feb 13, 2013 . April 7, 2014 . https://web.archive.org/web/20140407093608/http://edgar.secdatabase.com/1487/91205702020468/filing-main.htm . live .
  3. Web site: MVP Group Acquires Midwest-CBK Home Furnishings News. www.hfnmag.com. 23 September 2016. https://web.archive.org/web/20140114230545/http://www.hfnmag.com/tabletop-gifts/mvp-group-acquires-midwestcbk/. 14 January 2014. dead.
  4. News: Blyth, Inc. Announces Sale Of Sterno Business (Press release). 10 June 2014. Bloomberg. PR Newswire. 29 October 2012. 14 July 2014. https://web.archive.org/web/20140714160832/http://www.bloomberg.com/article/2012-10-29/ahfpJSEjayrc.html. live.
  5. Web site: Blyth Timeline. Blyth, Inc.. 10 June 2014. dead. https://web.archive.org/web/20150316142348/http://blyth.com/timeline.asp. 16 March 2015.
  6. Web site: Carlyle Drops $98M On Candle Merchant . 2017-07-25 . 2018-01-24 . https://web.archive.org/web/20180124070722/https://www.law360.com/articles/697111/carlyle-drops-98m-on-candle-merchant . live .
  7. Web site: Crosby Rock . 2017-07-25 . 2018-02-03 . https://web.archive.org/web/20180203150732/https://crosbyrock.com/ . live .
  8. Web site: ViSalus Launches 'NEON' Energy Drink. 2015-04-21. BevNET.com. en-US. 2019-01-31.
  9. Web site: Visalus Review Are MLM Products for Weight Loss?. FNS. Summer Banks. SPT. 2018-05-15. DietSpotlight. en-US. 2019-01-31.
  10. Web site: Edgar Online via Yahoo Finance . Blyth Inc. 10K - 4/18/2011 . 15 May 2012 . 10 March 2014 . https://web.archive.org/web/20140310154810/http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&FilingID=7853519&companyid=366&ppu=%252fdefault.aspx%253fcik%253d921503 . live .
  11. Web site: DM News . Blyth Makes Two Acquisitions . 3 May 2012 . 9 September 2012 . https://web.archive.org/web/20120909211817/http://www.dmnews.com/blyth-makes-two-acquisitions/article/113430/ . dead .
  12. Web site: Reuters . Blyth, Inc. Completes Third Closing of ViSalus Acquisition . https://web.archive.org/web/20120119234751/http://www.reuters.com/finance/stocks/BTH/key-developments/article/2464013 . dead . January 19, 2012 . 6 May 2012.
  13. News: Moody's lowers outlook on Blyth. https://web.archive.org/web/20120923024156/http://www.businessweek.com/ap/2012-09-20/moodys-lowers-outlook-on-blyth. dead. September 23, 2012. 2012-09-22. Bloomberg Businessweek. September 20, 2012.
  14. Web site: Boyd. Roddy. The Infernal Machine: From Powder to Dust. Southern Investigative Reporting Foundation. 31 May 2014. 26 November 2012. 5 May 2014. https://web.archive.org/web/20140505003838/http://sirf-online.org/2012/11/26/the-infernal-machine-from-powder-to-dust/. live.
  15. News: ViSalus Completes Founder-Led Management Buyout (Press Release). 23 September 2014. MarketWatch. PR Newswire. 5 September 2014. 12 September 2014. https://web.archive.org/web/20140912105144/http://www.marketwatch.com/story/visalus-completes-founder-led-management-buyout-2014-09-05. live.
  16. News: Walsh. Dustin. ViSalus co-founders buy back stake, launch new product line. 23 September 2014. Crain's Detroit Business. 14 September 2014. 16 September 2014. https://web.archive.org/web/20140916231125/http://www.crainsdetroit.com/article/20140914/NEWS/309149972/visalus-co-founders-buy-back-stake-launch-new-product-line. live.
  17. News: Blyth Inc. (BTH) Is Up Sharply After Majority Sale Of ViSalus. 23 September 2014. RTT News. 3 September 2014. 12 September 2014. https://web.archive.org/web/20140912105147/http://www.rttnews.com/2378413/blyth-inc-bth-is-up-sharply-after-majority-sale-of-visalus.aspx. live.

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