Smart for Life Announces Definitive Agreement to Acquire Purely Optimal Nutrition, a Premier North American Nutraceutical Company
Smart for Life, Inc. (Nasdaq: SMFL) announces the acquisition of Purely Optimal Nutrition, expecting over $8 million in annualized revenue and $1 million in Adjusted EBITDA. The acquisition aims to enhance product offerings, accelerate revenue growth, and establish Smart for Life as a major player in the Health & Wellness sector.
Positive
Acquisition of Purely Optimal Nutrition to contribute over $8 million in annualized revenue and $1 million in Adjusted EBITDA.
Smart for Life aims to establish itself as a major international force in the Health & Wellness sector through the 'Buy-and-Build' strategy.
Synergies with manufacturing operations expected to enhance margins and revenue growth.
Purely Optimal's product line designed to cater to specific health and wellness needs with carefully sourced ingredients.
Acquisition to close within the next eight weeks, subject to financing and customary closing conditions.
The acquisition deal between Smart for Life and Purely Optimal Nutrition appears to be a strategic move to consolidate Smart for Life's position in the Health & Wellness sector. By integrating Purely Optimal's product line, Smart for Life is poised to enhance its portfolio with a broader range of nutraceuticals, tapping into the growing consumer demand for health supplements. The projected increase in annualized revenue and Adjusted EBITDA suggests that the acquisition may have a positive impact on Smart for Life's financial health.
However, the success of such acquisitions often hinges on the seamless integration of the acquired company's operations and the realization of the anticipated synergies. Investors should monitor the post-acquisition phase for indicators of successful integration, such as revenue growth and margin expansion. Additionally, the potential for brand extensions and the utilization of Smart for Life's FDA certified facility for product development could be a catalyst for future growth.
From a financial perspective, the acquisition's expected contribution of over $8 million in revenue and $1 million in Adjusted EBITDA is significant for Smart for Life. This aligns with the company's 'Buy-and-Build' strategy, aiming to create a more robust financial profile and potentially increase shareholder value. Investors will likely focus on the deal's financing details and the impact on Smart for Life's balance sheet, as well as the company's ability to leverage operational synergies to improve margins.
It's important for stakeholders to consider the short-term costs associated with the acquisition and the long-term benefits that may arise from expanded market share and economies of scale. The deal's timing and successful closure will also be critical, with any delays potentially affecting investor sentiment. The mention of 'subject to financing' indicates that the acquisition is not yet fully funded, which introduces an element of risk that should be assessed.
In transactions like these, legal due diligence is paramount to ensure compliance with regulatory standards, particularly when it involves companies with operations in the Health & Wellness sector. Smart for Life's mention of an FDA certified facility signals a commitment to regulatory compliance, which is reassuring for stakeholders. The legal framework surrounding the acquisition, including financing terms and customary closing conditions, will play a important role in the smooth execution of the deal.
Investors should be aware of the legal complexities that can arise during such acquisitions, such as intellectual property rights, contract transfers and potential antitrust issues. The successful navigation of these legal hurdles can greatly influence the acquisition's timeline and its eventual impact on the company's market position.
04/08/2024 - 08:30 AM
Profitable Acquisition Expected to Contribute More than $8 Million of Annualized Revenue and Over $1 Million of Adjusted EBITDA
MIAMI, April 08, 2024 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a global leader in the Health & Wellness sector marketing and manufacturing nutritional foods and supplements worldwide, today announced that it has executed a definitive agreement to acquire Purely Optimal Nutrition , a premier eCommerce nutraceuticals company with operations in North America.
A.J. Cervantes, Jr., Smart for Life’s founder and Chairman, stated, “We are very excited to have Purely Optimal join forces under the Smart for Life umbrella. Purely Optimal’s product line is designed to yield optimal results with carefully sourced and nourishing ingredients from all around the world. We believe these formulations are validated and targeted to enhance specific health and wellness needs. As part of our synergistic M&A approach, the resources provided by Smart for Life will enable Purely Optimal to accelerate revenue growth and meaningfully expand margins even further.”
“This acquisition is another validation of our ‘Buy-and-Build’ strategy designed to establish Smart for Life as a major international force in the Health & Wellness sector,” stated Darren Minton, CEO of Smart for Life. “We could not be more excited to extend our offering to include Purely Optimal’s broad product line, which includes dozens of high-quality supplements. Purely Optimal is currently generating estimated revenue in excess of $8 million and over $1 million of Adjusted EBITDA for the trailing twelve months. In addition, the favorable impact and synergies with our manufacturing operations cannot be overstated.”
Mr. Minton continued, “The Purely Optimal management team has created a world class brand with a deep and loyal customer base. We believe that Smart for Life can help further support and monetize that customer base with some substantial brand extensions, particularly in the area of the creation of Purely Optimal nutritional food products, formulated and manufactured at our FDA certified facility.”
The acquisition is expected to close within the next eight weeks and is subject to financing and customary closing conditions.
About Smart for Life, Inc.
Smart for Life, Inc. (Nasdaq: SMFL) is engaged in the development, marketing, manufacturing, acquisition, operation and sale of a broad spectrum of nutritional and related products with an emphasis on Health & Wellness. Structured as a publicly held holding company, the Company is executing a Buy-and-Build strategy with serial accretive acquisitions creating a vertically integrated company. To drive growth and earnings, Smart for Life is developing proprietary products as well as acquiring other profitable companies, encompassing brands, manufacturing and distribution channels. The Company has also commenced the execution of a restructuring plan including recapitalization of the Company with equity and debt financings, the sale of certain non-performing assets, the potential sale and leaseback of the Company’s 18,000 sq. ft. Doral manufacturing facility and the recent liquidation of the Company’s senior debt facility. In addition, the Company is converting certain debt obligations to equity to materially improve the Company’s balance sheet. The Company has signed a definitive agreement for the acquisition of Purely Optimal Nutrition, which is expected to add additional revenue and EBITDA. For more information about Smart for Life, please visit: www.smartforlifecorp.com .
Forward-Looking Statements
This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on management’s beliefs, assumptions and expectations of Smart for Life’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although Smart for Life believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Smart for Life does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. No assurances can be made that Smart for Life will successfully acquire its acquisition targets. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause Smart for Life’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the Securities and Exchange Commission.
Disclaimer
The information provided in this press release is intended for general knowledge only and is not a substitute for professional medical advice or treatment for specific medical conditions. Always seek the advice of your physician or other qualified health care provider with any questions you may have regarding a medical condition. This information is not intended to diagnose, treat, cure or prevent any disease.
Investor Relations Contact
Crescendo Communications, LLCSMFL@crescendo-ir.com
What is the expected annualized revenue contribution from the acquisition of Purely Optimal Nutrition by Smart for Life?
The acquisition is expected to contribute more than $8 million in annualized revenue.
What is the estimated Adjusted EBITDA from Purely Optimal Nutrition for the trailing twelve months?
Purely Optimal is generating over $1 million of Adjusted EBITDA for the trailing twelve months.
What is Smart for Life's strategy to establish itself in the Health & Wellness sector?
Smart for Life aims to establish itself as a major international force in the Health & Wellness sector through the 'Buy-and-Build' strategy.
What impact is expected on Smart for Life's manufacturing operations from the acquisition?
The acquisition is expected to bring synergies with manufacturing operations to enhance margins and revenue growth.
When is the acquisition of Purely Optimal Nutrition expected to close?
The acquisition is expected to close within the next eight weeks, subject to financing and customary closing conditions.
