<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14D-1/A
AMENDMENT NO. 8
TO
SCHEDULE 14D-1
TENDER OFFER STATEMENT PURSUANT TO SECTION 14(d)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
HERBALIFE INTERNATIONAL, INC.
(Name of Subject Company)
MH MILLENNIUM HOLDINGS LLC
MH MILLENNIUM ACQUISITION CORP.
MARK HUGHES
(Bidders)
CLASS A COMMON STOCK, PAR VALUE $.01 PER SHARE
CLASS B COMMON STOCK, PAR VALUE $.01 PER SHARE
(Title of Class of Securities)
426908208 (CLASS A)
426908307 (CLASS B)
(Cusip Number of Class of Securities)
MH MILLENNIUM HOLDINGS LLC
MH MILLENNIUM ACQUISITION CORP.
MARK HUGHES
C/O HERBALIFE INTERNATIONAL, INC.
1800 CENTURY PARK EAST
LOS ANGELES, CA 90067
ATTN. TIMOTHY GERRITY
TEL. (301) 410-9600
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications on Behalf of Bidders)
COPY TO:
ANTHONY T. ILER, ESQ.
IRELL & MANELLA LLP
333 SOUTH HOPE STREET, SUITE 3300
LOS ANGELES, CA 90071
(213) 620-1555
(Continued on following pages)
(Page 1 of 8 pages)
<PAGE> 2
CUSIP No. 426908208 14D-1/A Page 2
426908307
================================================================================
1. Name of Reporting Persons MH MILLENNIUM HOLDINGS LLC
S.S. or I.R.S. Identification Nos. of Above Persons 95-475-8098
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group
(a)/X/
(b)/ /
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Sources of Funds
Not Applicable
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(e) or 2(f)
/ /
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization
DELAWARE
- --------------------------------------------------------------------------------
7. Aggregate Amount Beneficially Owned by Each Reporting Person
(1)
- --------------------------------------------------------------------------------
8. Check if the Aggregate Amount in Row 7 Excludes Certain Shares
/ /
- --------------------------------------------------------------------------------
9. Percent of Class Represented by Amount in Row 7
(1)
- --------------------------------------------------------------------------------
10. Type of Reporting Person
CO
================================================================================
(1) MH Millennium Holdings LLC owns no shares of any class of common stock of
the Company. The Mark Hughes Family Trust (the "Trust"), however, which is
the sole member of MH Millennium Holdings LLC, as of September 8, 1999
beneficially owned 5,704,331 Class A Shares and 11,258,665 Class B Shares,
(including 308,331 Class A Shares and 466,665 Class B Shares which the Trust
has a right to acquire within 60 days of the date hereof), representing in
the aggregate 55.4% of the outstanding Class A Shares and 59.0% of the
outstanding Class B Shares, respectively. Mark Hughes is the sole trustee
of The Mark Hughes Family Trust and its beneficiary.
<PAGE> 3
CUSIP No. 426908208 14D-1/A Page 3
426908307
================================================================================
1. Name of Reporting Persons MH MILLENNIUM ACQUISITION CORP.
S.S. or I.R.S. Identification Nos. of Above Persons 95 475 7938
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group
(a)/X/
(b)/ /
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Sources of Funds
SC/BK/OO (subordinated debentures)
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(e) or 2(f)
/ /
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization
NEVADA
- --------------------------------------------------------------------------------
7. Aggregate Amount Beneficially Owned by Each Reporting Person
(2)
- --------------------------------------------------------------------------------
8. Check if the Aggregate Amount in Row 7 Excludes Certain Shares
/ /
- --------------------------------------------------------------------------------
9. Percent of Class Represented by Amount in Row 7
(2)
- --------------------------------------------------------------------------------
10. Type of Reporting Person
CO
================================================================================
(2) MH Millennium Acquisition Corp. owns no shares of any class of common stock
of the Company. MH Millennium Holdings LLC, however, owns 100% of MH
Millennium Acquisition Corp. For further information, see note 1 on page 2
of this Schedule 14D-1.
<PAGE> 4
CUSIP No. 426908208 14D-1/A Page 4
426908307
================================================================================
1. Name of Reporting Persons Mark Hughes
S.S. or I.R.S. Identification Nos. of Above Persons
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group
(a)/X/
(b)/ /
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Sources of Funds
Not Applicable
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(e) or 2(f)
/ /
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization
United States
- --------------------------------------------------------------------------------
7. Aggregate Amount Beneficially Owned by Each Reporting Person
(3)
- --------------------------------------------------------------------------------
8. Check if the Aggregate Amount in Row 7 Excludes Certain Shares
/ /
- --------------------------------------------------------------------------------
9. Percent of Class Represented by Amount in Row 7
(3)
- --------------------------------------------------------------------------------
10. Type of Reporting Person
IN
================================================================================
(3) Mr. Hughes, directly or indirectly, is the beneficial owner of 5,704,331
Class A Shares and 11,258,665 Class B Shares, excluding 183,333 Class A
Shares and 366,666 Class B Shares owned by the Herbalife Family Foundation
(in which Mr. Hughes has no pecuniary interest) and including 308,331 Class
A Shares and 466,663 Class B Shares issuable upon exercise of stock options
that are exercisable within 60 days of September 1, 1999. The Class A Shares
and the Class B Shares beneficially owned by Mr. Hughes or entities
controlled by him, calculated in accordance with the SEC's Exchange Act Rule
13d-3, represented 55.4% of the total outstanding Class A Shares and 59.0%
of the total outstanding Class B Shares as of September 1, 1999.
<PAGE> 5
Page 5
MH Millennium Acquisition Corp., a Nevada corporation (the "Purchaser"),
hereby amends and supplements, as set forth in this Amendment No. 8, its Tender
Offer Statement on Schedule 14D-1, filed on September 17, 1999 (as amended, the
"Schedule 14D-1"), relating to the offer by the Purchaser to purchase all
outstanding shares of Class A common stock and Class B common stock of Herbalife
International, Inc., a Nevada corporation. The item numbers and responses
thereto below are in accordance with the requirements of Schedule 14D-1.
Capitalized terms used but not defined herein have the meanings assigned to them
in the Schedule 14D-1.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
The exhibits to the Schedule 14D-1 are amended and restated as follows:
EXHIBIT NO. DESCRIPTION
- ----------- -----------
(a)(1) Offer to Purchase, dated September 17, 1999.*
(a)(2) Letter of Transmittal.*
(a)(3) Notice of Guaranteed Delivery.*
(a)(4) Form of letter, dated September 17, 1999, to brokers,
dealers, commercial banks, trust companies and other
nominees.*
(a)(5) Form of letter to be used by brokers, dealers, commercial
banks, trust companies and nominees to their clients.*
(a)(6) Guidelines for Certification of Taxpayer Identification
Number on Substitute Form W-9.*
(a)(7) Summary Advertisement, dated September 17, 1999.*
(a)(8) Press Release, dated September 13, 1999.*
(a)(9) Intentionally omitted.
(a)(10) Press Release, dated September 17, 1999.*
(a)(11) Press Release, dated September 28, 1999.*
(a)(12) Press Release, dated October 13, 1999.*
(a)(13) Press Release, dated October 21, 1999.**
(b)(1) Letter from Donaldson, Lufkin & Jenrette Securities
Corporation to The Board of Directors and the Special
Committee of Herbalife International, Inc., dated September
13, 1999.*
(c)(1) Agreement and Plan of Merger, dated September 13, 1999, by
and among the Company, Mark Hughes, the Mark Hughes Family
Trust, the Parent and the Purchaser (included as Annex A
to Exhibit (a)(1)).
(c)(2) The Equity Commitment Letter from Mark Hughes to the
Company, dated September 10, 1999.*
(d) Not Applicable.
(e) Not Applicable.
(f) Not Applicable.
(g)(1) Complaint in Patricia Lisa and Harbor Finance Partners vs.
Mark Hughes, et al., Case No. BC 216711 (CA Sup. Ct.,
September 14, 1999).*
(g)(2) Complaint in Stuart H. Savett vs. Herbalife International,
Inc., et al., Case No. BC 216761 (CA Sup. Ct., September 14,
1999).*
(g)(3) Complaint in Kenneth Schweitzer vs. Herbalife
International, Inc., et al., Case No. BC 216823 (CA Sup.
Ct., September 15, 1999).*
(g)(4) Complaint in Frances Longstreth vs. Herbalife
International, Inc., Case No. BC 216911 (CA Sup. Ct.,
September 16, 1999).*
(g)(5) Complaint in Rae Ellen Plattus vs. Christopher Pair, et
al., Case No. BC 216904 (CA Sup. Ct., September 16, 1999).*
(g)(6) Complaint in Colleen M. Tharp vs. Herbalife International,
Inc., Case No. A408158II (NV Dist. Ct., September 14,
1999).*
(g)(7) Complaint in Francis Mcfarlain, IRA vs. Herbalife
International, Inc., Case No. A408159I (NV Dist. Ct.,
September 15, 1999).*
(g)(8) Complaint in Lee Brenin vs. Mark Hughes, et al., Case No.
BC 216932 (CA Sup. Ct., September 17, 1999).*
(g)(9) Complaint in Kevin Coyle vs. Mark Hughes, et al., Case No.
BC216759 (CA Sup. Ct., September 14, 1999).*
(g)(10) Complaint in Kevin Coyle vs. Mark Hughes, et al., Case No.
A408466 (NV Dist. Ct., September 22, 1999).*
(g)(11) Complaint in Michael Vaupel vs. Mark Hughes, et al.,
Case No. BC217257 (CA Sup. Ct., September 23, 1999).*
- --------------
* Previously filed.
** Filed herewith.
<PAGE> 6
Page 6
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Dated: October 25, 1999
MH MILLENNIUM HOLDINGS LLC:
By: /s/ MARK HUGHES
------------------------------------------
Name: Mark Hughes
Title: Managing Member
MH MILLENNIUM ACQUISITION CORP.:
By: /s/ MARK HUGHES
------------------------------------------
Name: Mark Hughes
Title: President
/s/ MARK HUGHES
------------------------------------------
MARK HUGHES
<PAGE> 7
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
(a)(1) Offer to Purchase, dated September 17, 1999.*
(a)(2) Letter of Transmittal.*
(a)(3) Notice of Guaranteed Delivery.*
(a)(4) Form of letter, dated September 17, 1999, to brokers,
dealers, commercial banks, trust companies and other
nominees.*
(a)(5) Form of letter to be used by brokers, dealers, commercial
banks, trust companies and nominees to their clients.*
(a)(6) Guidelines for Certification of Taxpayer Identification
Number on Substitute Form W-9.*
(a)(7) Summary Advertisement, dated September 17, 1999.*
(a)(8) Press Release, dated September 13, 1999.*
(a)(9) Intentionally omitted.
(a)(10) Press Release, dated September 17, 1999.*
(a)(11) Press Release, dated September 28, 1999.*
(a)(12) Press Release, dated October 13, 1999.*
(a)(13) Press Release, dated October 21, 1999.**
(b)(1) Letter from Donaldson, Lufkin & Jenrette Securities
Corporation to The Board of Directors and the Special
Committee of Herbalife International, Inc., dated September
13, 1999.*
(c)(1) Agreement and Plan of Merger, dated September 13, 1999, by
and among the Company, Mark Hughes, the Mark Hughes Family
Trust, the Parent and the Purchaser (included as Annex A
to Exhibit (a)(1)).
(c)(2) The Equity Commitment Letter from Mark Hughes to the
Company, dated September 10, 1999.*
(d) Not Applicable.
(e) Not Applicable.
(f) Not Applicable.
(g)(1) Complaint in Patricia Lisa and Harbor Finance Partners vs.
Mark Hughes, et al., Case No. BC 216711 (CA Sup. Ct.,
September 14, 1999).*
(g)(2) Complaint in Stuart H. Savett vs. Herbalife International,
Inc., et al., Case No. BC 216761 (CA Sup. Ct., September 14,
1999).*
(g)(3) Complaint in Kenneth Schweitzer vs. Herbalife
International, Inc., et al., Case No. BC 216823 (CA Sup.
Ct., September 15, 1999).*
(g)(4) Complaint in Frances Longstreth vs. Herbalife
International, Inc., Case No. BC 216911 (CA Sup. Ct.,
September 16, 1999).*
(g)(5) Complaint in Rae Ellen Plattus vs. Christopher Pair, et
al., Case No. BC 216904 (CA Sup. Ct., September 16, 1999).*
(g)(6) Complaint in Colleen M. Tharp vs. Herbalife International,
Inc., Case No. A408158II (NV Dist. Ct., September 14,
1999).*
(g)(7) Complaint in Francis Mcfarlain, IRA vs. Herbalife
International, Inc., Case No. A408159I (NV Dist. Ct.,
September 15, 1999).*
(g)(8) Complaint in Lee Brenin vs. Mark Hughes, et al., Case No.
BC 216932 (CA Sup. Ct., September 17, 1999).*
(g)(9) Complaint in Kevin Coyle vs. Mark Hughes, et al., Case No.
BC216759 (CA Sup. Ct., September 14, 1999).*
(g)(10) Complaint in Kevin Coyle vs. Mark Hughes, et al., Case No.
A408466 (NV Dist. Ct., September 22, 1999).*
(g)(11) Complaint in Michael Vaupel vs. Mark Hughes, et al.,
Case No. BC217257 (CA Sup. Ct., September 23, 1999).*
- --------------
* Previously filed.
** Filed herewith.
<PAGE> 1
EXHIBIT (a)(13)
Contact: Investor Relations
Herbalife International
(310) 410-9600 ext. 32202
[email protected]
HERBALIFE REPORTS 1999 THIRD QUARTER EARNINGS
LOS ANGELES, CA -- October 21, 1999 -- Herbalife International, Inc.
(NASDAQ NM: HERBA, HERBB) today reported its financial results for the third
quarter ended September 30, 1999.
Retail sales for the 1999 third quarter increased 11 percent to $446.0
million, from $402.7 million in the 1998 comparable quarter. In local currency
terms, retail sales increased 6 percent over the comparable prior year third
quarter. Net sales for the 1999 third quarter, after the effect of distributor
allowances, increased 12 percent to $238.9 million from $213.0 million in the
same quarter last year. Net income increased to $15.5 million, or $0.51 per
diluted share, from $7.1 million, or $0.24 per diluted share, in the 1998 third
quarter. Net income in the 1999 third quarter includes $0.12 per share benefit
from the favorable effect of currency translation on foreign results compared to
the year ago quarter. Additionally, the 1998 third quarter included a $6.5
million charge, or approximately $0.14 per share, related to Russian inventory
and accounts receivable reserves.
For the nine months ended September 30, 1999, retail sales increased 8
percent to $1.3 billion compared to $1.2 billion in the same period last year.
Net sales for the first nine months of 1999, after the effect of distributor
allowances, increased 9 percent to $691.7 million from $632.8 million in the
same period last year. Net income increased 6 percent to $39.5 million, or $1.30
per diluted share, from net income of $37.2 million, or $1.24 per diluted share.
<PAGE> 2
The following table highlights currency impact by region:
<TABLE>
<CAPTION>
Retail Sales % Change
----------------------------------------------------------------
Third quarter 1999 vs. 1998 Nine months 1999 vs. 1998
------------------------------ ------------------------------
(in $US) (in local currency) (in $US) (in local currency)
-------- ------------------- -------- -------------------
<S> <C> <C> <C> <C>
The Americas +20% +24% +15% +20%
Asia/Pacific Rim +11% - 6% +15% + 1%
Europe - + 6% - 7% - 4%
</TABLE>
In the Americas, retail sales for the 1999 third quarter increased 20
percent to $143.1 million from $119.7 million in the 1998 third quarter. Retail
sales in the United States increased 19 percent to $110.2 million for the 1999
third quarter, from $92.8 million in the third quarter of 1998. Retail sales in
Mexico increased 91 percent to $12.7 million for the 1999 third quarter. Retail
sales in Brazil declined 14 percent to $9.3 million for the third quarter of
1999, as compared to the same period for 1998. However, when measured in local
currency, 1999 third quarter retail sales for Brazil increased 37 percent
compared to the same quarter in 1998.
In the Asia/Pacific Rim region, 1999 third quarter retail sales increased
11 percent to $193.7 million from $174.1 million in the third quarter of 1998.
Retail sales of $35.2 million in South Korea for the 1999 third quarter
increased from $10.0 million in the comparable prior year quarter. Japan's
retail sales of $126.8 million declined 6 percent from the same quarter last
year. When measured in local currency, 1999 third quarter retail sales for Japan
decreased 24 percent compared to the same quarter in 1998.
Retail sales in Europe were $109.3 million in the third quarter of 1999
compared to $108.8 million in the third quarter of 1998. Within the region,
retail sales in Italy increased 27 percent to $28.2 million. Retail sales in The
Netherlands and Germany increased 41 percent and 16 percent to $7.5 million and
$15.5 million, respectively. Offsetting these increases was a decline to retail
sales in Russia of 63 percent to $5.4 million and a decline in the Czech
Republic of 64 percent to $3.1 million in the third quarter of 1999.
Herbalife announced on September 13, 1999 that its Board of Directors
accepted a definitive offer from Mark Hughes to purchase all company shares not
owned by Mr.
<PAGE> 3
Hughes for $17.00 per share in cash. The tender offer is set to expire on
November 24, 1999, however Mr. Hughes may further extend the expiration time.
On November 10, 1999, Herbalife expects to commence operations in India,
which will bring to 45 the number of countries in which the Company has
established a market presence.
Herbalife International, Inc. markets nutritional, weight management
and personal care products worldwide. Herbalife products are available only
through a network of independent distributors who purchase the products
directly from the Company.
Forward-looking statements in this press release involve material risks and
uncertainties that could cause actual results and events to differ materially
from those set forth in the forward-looking statements, including the company's
ability to continue to attract, maintain and motivate its distributors, changes
in the regulatory environment affecting network marketing sales and sales of
foods and dietary supplements, the effects of adverse publicity on sales,
volatility in the company's earnings, and other risks and uncertainties detailed
from time to time in the company's SEC filings in recent years. For further
information, refer to the Company's final prospectus filed in March, 1998 and
the Company's Form 10-K for the year ended December 31, 1998.
TABLE FOLLOWS
<PAGE> 4
SELECTED COMPARATIVE FINANCIAL HIGHLIGHTS (UNAUDITED)
IN THOUSANDS, EXCEPT PER SHARE AMOUNTS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Sales by Region:
Europe $ 109,294 $ 108,842 $ 345,493 $ 370,155
The Americas 143,078 119,719 400,791 348,684
Asia/Pacific Rim 193,669 174,143 554,321 480,454
---------- ---------- ---------- ----------
Total Retail Sales 446,041 402,704 1,300,605 1,199,293
Less Distributor Allowance 207,148 189,672 608,923 566,541
---------- ---------- ---------- ----------
Net Sales 238,893 213,032 691,682 632,752
Cost of Sales 63,469 57,738 179,586 165,884
Royalty Overrides 66,747 61,253 201,686 183,929
Marketing, Distribution &
Administration Expenses 82,918 82,559 245,929 223,205
Interest Income 157 396 993 2,072
---------- ---------- ---------- ----------
Income before Income Taxes and Minority Interest 25,916 11,878 65,474 61,806
Taxes 9,978 4,573 25,208 23,795
Minority interest 393 253 816 842
---------- ---------- ---------- ----------
Net Income $ 15,545 $ 7,052 $ 39,450 $ 37,169
========== ========== ========== ==========
Earnings per Share - Basic $ 0.54 $ 0.25 $ 1.38 $ 1.28
========== ========== ========== ==========
Earnings per Share - Diluted $ 0.51 $ 0.24 $ 1.30 $ 1.24
========== ========== ========== ==========
Equivalent Shares Outstanding - Basic 28,588 28,764 28,587 29,004
========== ========== ========== ==========
Equivalent Shares Outstanding - Diluted 30,342 29,240 30,343 30,086
========== ========== ========== ==========
</TABLE>
<PAGE> 5
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
IN THOUSANDS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1999 1998
------------- ------------
<S> <C> <C>
Assets:
Cash and Investments $119,062 $105,907
Accounts Receivable 36,087 44,471
Inventories 93,556 88,138
Other Current Assets 45,811 39,535
Property and Equipment, Net 49,718 37,448
Other Assets 41,067 32,684
-------- --------
Total Assets $385,301 $348,183
-------- --------
Liabilities and Stockholders' Equity:
Current Liabilities 160,713 157,428
Other Liabilities 34,238 26,944
Stockholders' Equity 190,350 163,811
-------- --------
Total Liabilities and Stockholders' Equity $385,301 $348,183
======== ========
</TABLE>
