GNC - GNC: The Joint Venture
GNC (GNC) is set to establish a joint venture with Harbin Pharmaceuticals early in the coming year (pending closing of the final preferred stock transaction) which will replace the company’s current business in China. The joint venture will impact the company’s financial results in various ways, not the least of which will be reduced near term operating income as a result of the effective transfer of a 65% interest to Harbin.
Moreover, while not discussed during the company’s third quarter conference call, the most recently announced terms for the joint venture differ from