US-based nutrition company Herbalife has entered into an agreement to acquire a manufacturing facility in Winston Salem,North Carolina for$22.2m.
This move is line with the company's strategy to increase the self-manufacturing of its products.The deal includes incentives from Winston Salem,Forsyth County and the state of North Carolina.
The company noted that it has chosen the Winston Salem location due to the incentives and the availability of quality labor force in the Triad region.
The facility will manufacture Herbalife's nutritional powders and liquids for the North American and other markets around the world,and will create 500 new jobs.
In addition to the acquisition,the company plans to invest$100m on machinery and technology,as well as a complete retro-fitting of the existing facility to ensure it is in full compliance with US Good Manufacturing Practices(cGMPs)for dietary supplements and food products.
Herbalife chief operating officer Rich Goudis said that the acquisition is a part of the company's plan to gain greater control of its products at every stage of the process and meet the increased product needs of the independent distributors and the customers around the world.
The deal,which is subject to the completion of due diligence on the property,is expected to be completed in late December 2012.
