WeightWatchers 2009 Annual Report Download - page 67

Franchise Acquisitions
The following are our key acquisitions since fiscal 2007:
In June 2008, we acquired substantially all of the assets of two of our franchisees, Weight Watchers of
Syracuse, Inc. and Dieters of the Southern Tier, Inc., for a combined purchase price of approximately $20.9
million.
In June 2008, we acquired substantially all of the assets of our Wichita, Kansas franchisee for a purchase
price of approximately $5.7 million.
In January 2008, we acquired substantially all of the assets of our Palm Beach, Florida franchisee for a
purchase price of approximately $12.9 million.
On June 2007, we acquired substantially all of the assets of our British Columbia franchisee for a purchase
price of approximately $15.8 million.
China Joint Venture
In February 2008, we entered into a joint venture with Groupe DANONE S.A. to establish a weight
management business in the People’s Republic of China. The joint venture, 51% owned by us and 49% owned by
Groupe DANONE, commenced retail operations in China in September 2008.
Stock Transactions
On October 9, 2003, our Board of Directors authorized a program to repurchase up to $250.0 million of our
outstanding common stock. On each of June 13, 2005 and May 25, 2006, our Board of Directors authorized
adding $250.0 million to this program. Under this program, we will not purchase shares held by Artal. This
program currently has no expiration date. As of fiscal year-end 2008, $100.5 million remains available to
purchase our shares under this program. From fiscal 2003 through fiscal 2008, we purchased 15.6 million shares
of our common stock in the open market for a total purchase price of $649.5 million. No shares were repurchased
in fiscal 2009.
On December 18, 2006, we commenced the Tender Offer in which we sought to acquire up to 8.3 million
shares of our common stock at a price between $47.00 and $54.00 per share. Prior to the Tender Offer, we
entered into an agreement with Artal whereby Artal agreed to sell us, at the same price as was determined in the
Tender Offer, the number of its shares of our common stock necessary to keep its percentage ownership in us at
substantially the same level after the Tender Offer. Artal also agreed not to participate in the Tender Offer so that
it would not affect the determination of the price in the Tender Offer. The Tender Offer expired at midnight on
January 18, 2007, and on January 26, 2007 we repurchased approximately 8.5 million shares at a price of $54.00
per share. These repurchased shares were comprised of 8.3 million shares that we offered to purchase and
approximately 0.2 million shares purchased pursuant to our right to purchase up to an additional 2% of the
outstanding shares as of November 30, 2006. On February 2, 2007, we repurchased approximately 10.5 million
of Artal’s shares at a purchase price of $54.00 per share pursuant to our prior agreement with Artal. In January
2007, we amended and supplemented our revolving credit facility to finance these repurchases.
Factors Affecting Future Liquidity
Any future acquisitions, joint ventures or other similar transactions could require additional capital and we
cannot be certain that any additional capital will be available on acceptable terms or at all. Our ability to fund our
capital expenditure requirements, interest, principal and dividend payment obligations and working capital
requirements and to comply with all of the financial covenants under our debt agreements depends on our future
operations, performance and cash flow. These are subject to prevailing economic conditions and to financial,
business and other factors, some of which are beyond our control.
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