Ares Management LLC and the Ontario Teachers’ Pension Plan have agreed to pay US$1.65 billion to acquire the parent company of General Nutrition Centers Inc.

“The opportunity to acquire GNC, a leading retailer of health and wellness products, complements our growing portfolio of consumer brands,” Jim Leech, senior vice-president of Teachers’ Private Capital, said today.

“We are excited to work with the company’s strong management team and Ares Management to continue to grow the brand.”

GNC, currently controlled by an affiliate of Apollo Management LP, is the largest global specialty retailer of nutritional products, supplements, diet and energy products.

It has more than 4,800 retail locations throughout the United States and franchise operations in 46 international markets, including Canada. For the 12 months ended Sept. 30, the company generated sales of about US$1.5 billion.

“We are excited to once again be partners with Teachers’ Private Capital in this transaction and are looking forward to working with GNC’s senior management team,” said David Kaplan, a senior partner at Ares Management.

“We share management’s vision for the company and believe that the business is well positioned for future growth.”

The deal has been approved by Apollo, which holds 97% of GNC’s shares.

Teachers’ Private Capital is the private investment arm of the US$85-billion Ontario Teachers’ Pension Plan, an independent corporation responsible for investing the fund and administering the pensions of Ontario’s 264,000 active and retired teachers.

It has more than US$12 billion in assets and is one of North America’s largest private investors.