Blyth Rises on Accord to Defer ViSalus Purchase: New York Mover
Blyth Inc. (BTH) climbed as much as 24 percent in extended trading after the maker of candles and decorations said it reached an agreement to defer the final closing of its purchase of its ViSalus unit until April 2014.
The shares rose 6.5 percent to $28.50 at 6:03 p.m., after advancing as high as $33.25 at 4:06 p.m. The stock had gained 3 percent to $26.77 at the close in New York.
Blyth, based in Greenwich, Connecticut, said in a statement today that the agreement in principle is with ViSalus founders Ryan Blair, Blake Mallen and Nick Sarnicola. A definitive accord still must be reached, the company said.
Blyth has been required to buy the remaining 27 percent of ViSalus, a health-care company acquired in 2008, next year for about $271 million if the unit meets certain performance goals. Moody’s Investors Service last month cut its outlook for Blyth to “negative,” citing a weaker core business and possible liquidity restraints in 2013 from the potential ViSalus purchase obligation and $100 million of notes that are maturing.
The company last month withdrew an initial public offering for the unit, citing uncertain market conditions for ViSalus. The IPO would have eliminated the requirement that Blyth buy the remaining stake in ViSalus, the company has said.
Chief Financial Officer Robert Barghaus didn’t immediately return telephone calls seeking comment.
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