Neways Inc., a Springville-based multilevel marketing company, announced Wednesday it has been acquired by Golden Gate Capital, a private equity firm based in San Francisco.
The sale closed Wednesday, according to James Watson, Neways' vice president of human resources and organizational development. Financial terms were not disclosed.
Although it has new ownership, Neways will continue under the leadership of its current chief executive officer, Eric Larsen, the company said. Larsen joined Neways in 2004.
Watson said it was too early to comment specifically on whether there will be changes to staffing or operations as a result of the sale.
"For the most part, I'd say that it's business as usual," Watson said. "Could there be some slight changes? That I don't know at this time."
Neways employs about 1,300 people worldwide, including about 550 in Utah, and has offices in 23 countries.
Going forward, Watson said Neways' customers and distributors can rest assured that the company is progressing and is committed.
"We want people to know that we're committed to the same mission and vision we've always been, with healthy products and a healthy world, and that our distributors will reap the benefits of this relationship" with Golden Gate, Watson said. "We are very excited about the future, and about Golden Gate."
In a joint statement released by the companies Wednesday, Neways founders Thomas E. Mower Sr. and his former wife, Leslie DeeAnn Mower, said that selling the company was "one of the hardest decisions of our lives."
"We believe it is in the best interests of ourselves, employees and distributors to make the change at this time and wish to thank everyone who contributed to the success of Neways," the Mowers said in the statement.
With the close of the sale, Neways ends its affiliation with its founders, Watson said. "We appreciate what they built and wish them well."
Thomas Mower Sr. and Leslie DeeAnn Mower were convicted by a jury last year of one count of conspiracy to defraud and six counts of tax evasion. Federal prosecutors said the two cashed an estimated $3.2 million in overseas commission checks without reporting the money to the IRS, to the tune of more than $1 million in taxes.
Leslie Mower was sentenced last September to just over two years while Thomas Mower received just under three years in federal prison. Last month, a federal judge denied the couple's motions to stay their sentences pending appeal. They have been ordered to surrender to federal prison officials by Monday.
Former Neways corporate attorney James L. Thompson also was sentenced to serve a year and a day for his part in covering up the tax fraud.
Golden Gate has about $3 billion of capital under management and specializes in "partnering with world-class management teams to invest in change-intensive, growth businesses," the firm said.
E-mail: jnii@desnews.com