Smart for Life Announces Letter of Intent to Acquire Premier North American Nutraceuticals Company
Smart for Life, Inc. (Nasdaq: SMFL) announced a non-binding Letter of Intent to acquire a premier eCommerce nutraceuticals company, aiming to enhance its market position in the Health & Wellness sector.
The target company generated over $15 million in revenue in the past twelve months and has been profitable. This acquisition is expected to be accretive to earnings and synergistic with Smart for Life's existing channels.
The deal reflects the company's ongoing aggressive M&A strategy aimed at reaching $100 million in revenue within the next year.
- Expected acquisition to add over $15 million in revenue and be accretive to earnings.
- Target has established a strong brand and consistent profitability.
- Anticipated operating efficiencies from combining operations.
- None.
Acquisition is Expected to Add over
MIAMI, Sept. 29, 2022 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a high growth global leader in the Health & Wellness sector marketing and manufacturing nutritional foods and supplements worldwide, today announced that it has executed a non-binding Letter of Intent (LOI) to acquire a premier eCommerce nutraceuticals company with operations in North America.
“We continue to execute on our aggressive M&A strategy, as illustrated by our latest LOI, which would represent our largest acquisition to date,” said A.J. Cervantes, Jr., the Company’s Chairman. “The target business has established a fantastic brand in the health and wellness sector and should be highly synergistic with our existing distribution channels and in-house manufacturing capabilities. Additionally, they achieved over
Darren Minton, CEO of Smart for Life, further noted, “Our management team has stated publicly that we are continuing to implement our high-growth acquisition strategy, and this is another example that we are doing exactly that. Considering the anticipated operating efficiencies to be gained by combining our operations, we expect this transaction will be highly accretive. Moreover, we believe the proposed terms are quite favorable to our shareholders, continuing our track record of acquiring complementary businesses at attractive valuations, especially as we grow toward our stated goal of
Smart for Life recently closed its fifth acquisition of Ceautamed Worldwide LLC, owner of the Greens First brand in July. This most recent LOI would represent Smart for Life’s sixth acquisition to date. Completion of the acquisition is subject to a number of conditions including the entry into definitive documentation, successful results from our diligence investigation and obtaining financing to consummate the acquisition.
Mr. Minton concluded, “Despite the unprecedented worldwide financial market conditions, it is our opinion that our proactive acquisition strategy, targeting accretive cash flow positive companies, combined with strategies to enhance organic growth, represents the best path to drive long-term value for shareholders.”
About Smart for Life, Inc.
Smart for Life, Inc. (Nasdaq: SMFL) is a high growth global leader in the Health & Wellness sector, marketing and manufacturing nutritional foods and supplements worldwide. Structured as a publicly held international holding company, the Company is executing a Buy-and-Build strategy with serial accretive acquisitions creating a vertically integrated company with an objective of aggregating companies generating a minimum of
Video regarding the Company’s manufacturing facility at Bonne Santé Natural Manufacturing is available at: www.bonnesantemanufacturing.com/video.
Investor material and a Fact Sheet with additional information about Smart for Life is available at: www.smartforlifecorp.com/investor-center.
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.
Investor Relations Contact
Crescendo Communications, LLC
Tel: (212) 671-1021
SMFL@crescendo-ir.com
FAQ
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