Blyth Inc. shares bombed in trading after the opening bell, after the company shelved its proposed $175 million initial public offering of stock in ViSalus Sciences, a nutritional supplement and weight-loss products company it acquired earlier this year.
Shares of Greenwich-based Blyth (NYSE: BTH) were trading below $27 before the opening bell Wednesday, Sept. 26, a 35 percent discount from their price just a week ago. Blyth sells a range of home goods through brands like PartyLite, as the case with ViSalus relying on a network of independent, home-based agents.
In the first half of 2012, Troy, Mich.-based ViSalus earned $25.5 million on $327 million in revenue, compared to $1.8 million in profits and sales of $59 million only a year earlier. That contributed to Blyth sales rocketing up 63 percent in the first half to $608 million, producing a $15.5 million profit for the company.
“We are extremely confident in the long-term growth prospects of ViSalus,” said Blyth CEO Robert Goergen, in a prepared statement. “We look forward to working with the ViSalus team to continue to build long-term value for Blyth’s shareholders.”
