GNC Is Out Of Shape, Looking For Buyer

(RTTNews) - GNC Holdings Inc. (GNC) Monday said it has commenced a strategic review that could lead to potential sale of the company.

Shares of GNC Holdings gained over 4 percent after the vitamins and health supplement retailer said it has hired Goldman Sachs and Wachtell, Lipton, Rosen & Katz to advise on "strategic and financial alternatives." The review could also result in refranchising, capital structure optimization and partnerships, the company said.

"After careful consideration, including discussions with a range of shareholders, we believe it is an appropriate time to undertake a comprehensive review of the company's strategic and financial alternatives," said Chairman Michael Hines.

Last Thursday, Pittsburgh, Pennsylvania-based GNC reported a poor result for its first quarter. Its profit dropped 20 percent to $50.8 million as revenues declined and operating costs rose reflecting failures in its turnaround plans.

GNC has a total enterprise value of about $3.1 billion, according to reports.

GNC is currently trading at $25.36, up $1.00 or 4.11%, on the NYSE.