Big industry news, folks!
You didn’t read the title wrong — we’re not talking about a sale on Gaspari products… the entire Gaspari Nutrition company is for sale.
Update – Oct 15, 2014: Gaspari Nutrition has been sold!
Update – May 7, 2015: Gaspari has released their first couple of products since the setback, including the aggressive Nova-X Testosterone Booster! We’ll see how the industry reacts, but no doubt, it’s different than anything we’ve seen.
To be more specific, Gaspari needs investment, be it in the form of external funding or an all-out purchase.
This week, Heritage Equity Partners LLC listed the New Jersey based supplement company on BizBuySell, an online business sales marketplace.[1,2]
The company was established in 1999, and has experienced 15 years of solid performance.
There is currently no asking price, nor are many financials publicly disclosed, although the listing states that sales reached $85 million per year. However, it then goes on to say that sales have declined “due to a number of factors”.
The man – Rich Gaspari
Gaspari Nutrition is named after Rich Gaspari, a professional bodybuilder through the 80s and 90s who won Mr. America, Mr. Universe, and was a three-time Mr. Olympia runner-up.
After his retirement, he founded his own line of supplements that are now sold worldwide. They are based in Lakewood, NJ, and have a 70,000 sq. ft. warehouse.
But the other original founders are gone
However one may want to paint Gaspari Nutrition’s picture, one fact cannot be avoided: The other “founding fathers” the business are no longer there.
Gaspari Nutrition is a company that was also built by Bruce Kneller and Joe Babick (with Rich’s name attached). Both of these gentlemen now run Giant Sports, an up-and-coming company whose products are all over this site, such as dominating our Top 10 Pre Workout Supplements list.
Without these two masterminds, business life has likely been quite a bit tougher on Rich and the rest of his team – but obviously those challenges aren’t insurmountable.
Yet the brand is strong
Gaspari is still a major company in this industry, and their product releases are still quite reveled. Our love for the taste of their Myofusion Advanced protein is one such example of a solid product launch, but not all products have been such home runs lately.
However, as the press release notes, sales have declined, and we’ve slowly seen this in action. One major issue (that can be fixed) has been their inability to capture the massive pre workout supplement market.
If Gaspari can balance out their hit protein and amino acid products with some equally effective new sports nutrition supplements, they can likely restore sales. It feels like they need to refresh their userbase, but at the core, there is still a team that can do it, and the brand recognition is quite high.
With four or five home run product releases and some new athletes, we can see it happening. But “hit or miss” releases need to stop, else the company will continue to lose trust in outside users.
The rumor mill
Over the past month, Gaspari has gone through several major changes, including releasing several of their employees. As a minor example, it seems like they have a new person operating their social media every time we tweet with them.
So this move amidst that turmoil isn’t exactly surprising.
But there are definitely some extra factors at play:
Are they selling shares or are they selling the entire company?
The decision here will likely come down to money. This is sheer speculation, but it wouldn’t be surprising to see Rich ride off into the sunset if he can end up with cold hard cash and no debt. We are not aware of the real financial situation though.
Will Rich remain involved?
Again, see the above point. It will probably come down to money, and this will be the major factor of the sale.
Our guess is that it’s probably an “all or none” thing. This is an industry that’s been growing by leaps and bounds for over a decade, and big money is moving in. The big money that’s coming to town will probably want to run the entire show, not work alongside someone else. Every investor is different though.
Gaspari has been involved in a fair number of legal battles, but we haven’t done much research on, nor do we care to discuss them. You can search for them yourselves. Some of these may not yet be resolved, which could require some additional legal fees.
Potential investors are encouraged to do their own due diligence, but we can be contacted for more product and technology-based insights (we’re not lawyers).