Nu Skin Enterprises completes $250 million deal for Mavely, sparking industry debate
- Nu Skin Enterprises Inc. has finalized a deal for its Mavely platform with Later.
- The transaction was valued at about $250 million, including cash and equity stakes.
- This move aims to enhance Nu Skin's marketing capabilities and drive innovation in their core business.
In a significant development for the beauty and wellness industry in the United States, Nu Skin Enterprises Inc. announced the completion of a strategic transaction involving its Mavely affiliate marketing platform on January 3, 2025. The deal was executed through Rhyz Inc., a subsidiary of Nu Skin. In this transaction, Rhyz sold Mavely to Later, a portfolio company of Summit Partners. The agreement was valued at around $250 million, which will be compensated in cash and a minority equity stake in the combined Later and Mavely business. Approximately $33 million of the total consideration will be distributed to other equity holders in the Mavely business, ensuring that various stakeholders benefit from this transaction. Following the agreement, Mavely is expected to maintain certain technology and social commerce capabilities that will support Nu Skin's ongoing affiliate marketing initiatives. This alignment suggests a continued focus on integrating Mavely's strengths into Nu Skin’s broader strategy within the beauty and wellness sectors. Ryan Napierski, president and CEO of Nu Skin, expressed optimism about the transaction, stating that the collaboration between Later and Mavely would enhance the capabilities of the company and contribute to their larger vision of creating a comprehensive beauty, wellness, and lifestyle ecosystem. This strategic move is expected to not only provide immediate capital but also facilitate increased innovation within Nu Skin's core operations. Furthermore, it showcases Rhyz’s value in nurturing and scaling impactful businesses that align strategically with the company's broader objectives. The transaction is notable for reflecting an approximate five-times return on Nu Skin's cumulative investment in Mavely since its initial acquisition in 2021. The financial outcomes from this strategic initiative are expected to be utilized to pay down existing debt and fund future innovations. In addition, Nu Skin plans to leverage its enhanced balance sheet for stock buybacks under its ongoing stock repurchase program, thereby offering increased value to its shareholders. Overall, this transaction signifies a pivotal shift in Nu Skin’s operational strategy, empowering the company to pursue growth while ensuring that it remains competitive in a fast-evolving market landscape.