FitLife Brands to Acquire Irwin Naturals
FitLife Brands (Nasdaq: FTLF) has announced a transformative acquisition of Irwin Naturals' assets for $42.5 million through a Section 363 bankruptcy transaction, expected to close around August 8, 2025. The all-cash deal will approximately double FitLife's size, with projected combined revenue exceeding $120 million and adjusted EBITDA between $20-25 million in the first full year.
The acquisition includes $16 million in net working capital at a pre-synergy multiple of less than 6x EBITDA. The deal will be funded through cash and a new financing package from First Citizens Bank, including a $40.625 million term loan and a $10 million revolving credit facility. Post-transaction leverage is expected to be below 2.25x EBITDA.
Irwin Naturals, founded in 1994, generated $33.1 million in revenue and $3.9 million in adjusted EBITDA during H1 2025, with strong presence in mass market retail (61%) and health food stores (35%).
FitLife Brands (Nasdaq: FTLF) ha annunciato un'acquisizione trasformativa degli asset di Irwin Naturals per 42,5 milioni di dollari tramite una procedura fallimentare ai sensi della Sezione 363, con chiusura prevista intorno all'8 agosto 2025. L'accordo in contanti raddoppierà circa le dimensioni di FitLife, con un fatturato combinato previsto superiore a 120 milioni di dollari e un EBITDA rettificato compreso tra 20 e 25 milioni di dollari nel primo anno completo.
L'acquisizione comprende 16 milioni di dollari in capitale circolante netto a un multiplo pre-sinergie inferiore a 6 volte l'EBITDA. L’operazione sarà finanziata tramite liquidità e un nuovo pacchetto di finanziamento da First Citizens Bank, che include un term loan da 40,625 milioni di dollari e una linea di credito revolving da 10 milioni di dollari. Dopo la transazione, la leva finanziaria dovrebbe essere inferiore a 2,25 volte l'EBITDA.
Irwin Naturals, fondata nel 1994, ha generato 33,1 milioni di dollari di ricavi e 3,9 milioni di dollari di EBITDA rettificato nel primo semestre 2025, con una forte presenza nella grande distribuzione (61%) e nei negozi di prodotti naturali (35%).
FitLife Brands (Nasdaq: FTLF) ha anunciado una adquisición transformadora de los activos de Irwin Naturals por 42,5 millones de dólares a través de una transacción de bancarrota bajo la Sección 363, con cierre previsto alrededor del 8 de agosto de 2025. El acuerdo en efectivo aproximadamente duplicará el tamaño de FitLife, con ingresos combinados proyectados que superan los 120 millones de dólares y un EBITDA ajustado entre 20 y 25 millones de dólares en el primer año completo.
La adquisición incluye 16 millones de dólares en capital de trabajo neto a un múltiplo pre-sinergias inferior a 6 veces el EBITDA. La operación se financiará mediante efectivo y un nuevo paquete de financiamiento de First Citizens Bank, que incluye un préstamo a plazo de 40,625 millones de dólares y una línea de crédito revolvente de 10 millones de dólares. Se espera que el apalancamiento posterior a la transacción sea inferior a 2,25 veces el EBITDA.
Irwin Naturals, fundada en 1994, generó 33,1 millones de dólares en ingresos y 3,9 millones de dólares en EBITDA ajustado durante el primer semestre de 2025, con una fuerte presencia en el mercado masivo (61%) y en tiendas de alimentos saludables (35%).
FitLife Brands (나스닥: FTLF)는 2025년 8월 8일경 마감 예정인 섹션 363 파산 절차를 통한 4,250만 달러 규모의 Irwin Naturals 자산 인수를 발표했습니다. 이 현금 거래는 FitLife의 규모를 약 두 배로 확대하며, 첫 완전 연도 합산 매출은 1억 2천만 달러를 초과하고 조정 EBITDA는 2,000만~2,500만 달러에 이를 것으로 예상됩니다.
이번 인수에는 1,600만 달러의 순운전자본이 포함되며, 시너지 효과를 반영하기 전 EBITDA 배수는 6배 미만입니다. 거래 자금은 현금과 First Citizens Bank의 신규 금융 패키지로 조달되며, 여기에는 4,062만 5천 달러의 기한부 대출과 1,000만 달러의 회전 신용 한도가 포함됩니다. 거래 후 레버리지는 EBITDA 대비 2.25배 미만일 것으로 예상됩니다.
1994년에 설립된 Irwin Naturals는 2025년 상반기에 3,310만 달러의 매출과 390만 달러의 조정 EBITDA를 기록했으며, 대형 소매 시장(61%)과 건강식품 매장(35%)에서 강력한 입지를 보유하고 있습니다.
FitLife Brands (Nasdaq : FTLF) a annoncé l'acquisition transformative des actifs d'Irwin Naturals pour 42,5 millions de dollars via une transaction de faillite en vertu de la Section 363, dont la clôture est prévue autour du 8 août 2025. Cette opération entièrement en espèces devrait doubler la taille de FitLife, avec un chiffre d'affaires combiné projeté dépassant 120 millions de dollars et un EBITDA ajusté compris entre 20 et 25 millions de dollars la première année complète.
L'acquisition inclut 16 millions de dollars de fonds de roulement net à un multiple pré-synergies inférieur à 6 fois l'EBITDA. Le financement sera assuré par des liquidités et un nouveau package de financement de First Citizens Bank, comprenant un prêt à terme de 40,625 millions de dollars et une ligne de crédit renouvelable de 10 millions de dollars. Après la transaction, l'endettement devrait être inférieur à 2,25 fois l'EBITDA.
Irwin Naturals, fondée en 1994, a généré 33,1 millions de dollars de chiffre d'affaires et 3,9 millions de dollars d'EBITDA ajusté au premier semestre 2025, avec une forte présence dans la grande distribution (61 %) et les magasins d'aliments naturels (35 %).
FitLife Brands (Nasdaq: FTLF) hat die transformative Übernahme der Vermögenswerte von Irwin Naturals für 42,5 Millionen US-Dollar im Rahmen einer Section-363-Insolvenztransaktion angekündigt, die voraussichtlich um den 8. August 2025 abgeschlossen wird. Der reine Bar-Deal wird die Größe von FitLife etwa verdoppeln, mit einem prognostizierten kombinierten Umsatz von über 120 Millionen US-Dollar und einem bereinigten EBITDA zwischen 20 und 25 Millionen US-Dollar im ersten vollen Jahr.
Die Übernahme umfasst 16 Millionen US-Dollar Nettoumlaufvermögen bei einem Pre-Synergie-Multiplikator von unter dem 6-fachen EBITDA. Die Finanzierung erfolgt durch Barmittel und ein neues Finanzpaket der First Citizens Bank, das einen 40,625 Millionen US-Dollar Term Loan und eine 10 Millionen US-Dollar revolvierende Kreditlinie beinhaltet. Nach der Transaktion wird die Verschuldung voraussichtlich unter dem 2,25-fachen EBITDA liegen.
Irwin Naturals, gegründet 1994, erzielte im ersten Halbjahr 2025 einen Umsatz von 33,1 Millionen US-Dollar und ein bereinigtes EBITDA von 3,9 Millionen US-Dollar, mit einer starken Präsenz im Massenmarkt-Einzelhandel (61 %) und in Reformhäusern (35 %).
- Transaction doubles company size with no shareholder dilution
- Expected adjusted EBITDA of $20-25 million in first full year
- Attractive acquisition multiple of less than 6x EBITDA
- Conservative post-transaction leverage below 2.25x EBITDA
- Complementary product lines and distribution channels
- Expected $1.5 million in SG&A cost savings
- Higher margin potential through e-commerce expansion
- Q2 2025 revenue decline of 4-5% year-over-year
- Significant decline in MRC's best-selling Dr. Tobias product
- Takes on new debt with variable interest rate exposure
- Seasonal weakness expected in second half of year
Insights
FitLife's $42.5M acquisition of Irwin Naturals will double revenue, offers strong synergies, and maintains low leverage at 2.25x EBITDA.
FitLife Brands is making a transformative acquisition of Irwin Naturals through a Section 363 bankruptcy purchase for
The acquisition represents a sub-6x EBITDA multiple before synergies, which is notably attractive compared to industry averages. FitLife is financing the purchase through a combination of cash on hand, a new
The strategic rationale for this acquisition is compelling on three fronts. First, the product portfolios are highly complementary - Irwin's strength in weight loss, sexual wellness, and body cleanse segments balances FitLife's focus on sports nutrition. Second, the companies have complementary distribution channels - Irwin brings significant presence in food, drug, and mass market channels (with major customers including CVS, Walmart, and Walgreens), while FitLife offers online expertise that Irwin currently lacks. Third, FitLife expects to operate Irwin more efficiently, projecting
The acquisition structure through bankruptcy proceedings allows FitLife to acquire assets while assuming minimal liabilities, further enhancing the deal's risk-return profile. With a disciplined approach to integration and no shareholder dilution, this acquisition appears well-positioned to deliver meaningful value for FitLife shareholders once transaction costs are absorbed.
FitLife's acquisition of Irwin Naturals is strategically sound with strong financials despite FitLife's recent 4-5% Q2 revenue decline.
Looking at FitLife's Q2 2025 preliminary results alongside this acquisition reveals important context. The company expects to report
The company expects Q2 net income between
Irwin Naturals generated
The combined entity's projected
FitLife's strategy to fully internalize Irwin's online sales (currently only
Transformative acquisition will approximately double the size of the company with no dilution to shareholders
OMAHA, NE, Aug. 05, 2025 (GLOBE NEWSWIRE) -- FitLife Brands, Inc. (“FitLife,” or the “Company”) (Nasdaq: FTLF), a provider of innovative and proprietary nutritional supplements and wellness products, announced that it has entered into definitive documentation and received requisite approvals to acquire substantially all of the assets of Irwin Naturals and its related affiliates (“Irwin”) under Section 363 of the US Bankruptcy Code (the “Transaction”).
Highlights of the Transaction, which is expected to close on or about August 8, 2025, are as follows:
- The Transaction will approximately double the size of the Company, with consolidated revenue for the combined business anticipated to be in excess of
$120 million for the first full year of operation. - The adjusted EBITDA of the combined business is anticipated to be between
$20 -25 million for the first full year of operation. - The all-cash transaction, with no shares being issued by FitLife, is expected to be accretive to existing shareholders once all transaction-related costs have been expensed.
- The purchase price of
$42.5 million , which is subject to minor customary post-closing adjustments, includes approximately$16 million of net working capital and equates to a pre-synergy acquisition multiple of less than 6x EBITDA. - The Transaction will be funded using a combination of cash on hand and the proceeds of a new committed term loan and an upsized
$10 million revolving credit facility provided by First Citizens Bank. - Pro forma for the Transaction, pre-synergy total leverage at closing is expected to be less than 2.25x EBITDA.
About Irwin Naturals
Irwin Naturals, founded in 1994, sells a wide variety of nutritional supplement products. Approximately
During the first half of 2025, Irwin generated revenue of
Rationale for the Transaction
FitLife believes the Transaction is compelling for a number of reasons. First, FitLife and Irwin have product lines that are largely complementary. Irwin sells a broad range of products and is particularly strong in the weight loss, sexual wellness, and body cleanse segments of the market. Its product portfolio is complementary to FitLife’s existing business, which is heavily weighted to sports nutrition.
Second, the channel strengths of FitLife and Irwin are complementary, which is anticipated to drive revenue growth for brands across the combined portfolio. For example, Irwin brings channel strength in the food, drug, and mass market channel, which currently represents a very small portion of FitLife’s revenue. In addition, FitLife’s strength in online channels is anticipated to drive growth for Irwin’s brands. More specifically, Irwin does not sell its products on Amazon or any other e-commerce platforms, instead allowing wholesale partners to sell the products online. Similar to what it did following the MusclePharm acquisition, FitLife intends to fully internalize this revenue stream and drive further online growth for Irwin. As is the case across FitLife’s current portfolio of brands, online sales of Irwin products are anticipated to generate substantially higher gross margins than those achieved through wholesale distribution.
Third, FitLife believes it can operate Irwin more profitably due to operational synergies. Although Irwin, which is based in the Los Angeles area, will operate largely independently, FitLife anticipates achieving SG&A cost savings and believes that additional cost savings unrelated to personnel may also be achievable. Under the terms of the Transaction, FitLife will retain approximately 50 Irwin employees, a level of employment that is anticipated to result in a reduction of approximately
Financing arrangements
FitLife plans to fund the consideration and the transaction costs using a combination of cash on hand as well as a new committed five-year term loan of
The term loan and revolving credit facility will bear interest at rates ranging from SOFR+200-300, depending on leverage. The Company intends to swap approximately
FitLife’s CEO, Dayton Judd, commented, “We are thrilled to welcome the Irwin brands and team members to the FitLife family. Irwin Naturals is a brand we have known and admired for a long time. We believe that our complementary sales channels and product portfolios will benefit both businesses, and we are excited for what the future holds.”
Preview of FitLife’s second quarter performance
For the second quarter of 2025, the Company expects to report a year-over-year revenue decline of approximately 4
The Company expects net income for the second quarter of 2025 to be between
Regarding MRC, the primary reason for the year-over-year decline is the performance of a best-selling product under the Dr. Tobias brand. During the second quarter of 2024, this particular product grew significantly compared to the second quarter of 2023. During the second quarter of 2025, revenue for this product declined markedly compared to the second quarter of 2024, although it is still outperforming revenue from the second quarter of 2023. Beyond continuously working to optimize our listings and advertising strategy on Amazon, we are also beginning to invest in driving greater brand reach beyond Amazon, which we believe will also benefit the brand on Amazon.
As previously reported, the Company will hold an investor conference call after market close on August 14, 2025 at 4:30 pm ET. On this call, FitLife’s management will share additional information about the Transaction, provide a report on the Company’s second quarter financial performance, and address investor questions. Investors interested in participating in the live call can dial (833) 492-0064 from the United States and provide the conference identification code of 759665. International participants can dial (973) 528-0163 and provide the same code.
About FitLife Brands
FitLife Brands is a developer and marketer of innovative and proprietary nutritional supplements and wellness products for health-conscious consumers. FitLife markets over 250 different products primarily online, but also through domestic and international GNC franchise locations as well as through various retail locations. FitLife is headquartered in Omaha, Nebraska. For more information, please visit our website at www.fitlifebrands.com.
Cautionary Statement About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like "plans," "expects," "will," "anticipates," "believes," "intends," "projects," "targets," "estimates," "outlook," or other words of similar meaning. All statements that address expectations or projections about the future, including statements about completion of this transaction and FitLife's financial results or outlook; strategy for growth; product development; regulatory approvals; market position; capital allocation strategy; liquidity; and the anticipated benefits of acquisitions, restructuring actions, or cost savings initiatives are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events which may not be accurate or realized. Forward-looking statements and other estimates also involve risks and uncertainties, many of which are beyond FitLife's control. While the list of factors presented below is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on FitLife's business, results of operations and financial condition. With respect to the contemplated transaction, forward-looking statements include, without limitation, financial estimates, statements as to the completion and benefits or effects of the transaction, including financial and operating results, the combined company's plans, objectives, expectations and intentions, and other statements that are not historical facts. The following risks, uncertainties and other factors could affect the Company's financial performance and cause actual results to differ materially from those expressed or implied in any forward-looking statements: the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement for the transaction; the risk that any necessary regulatory approvals may not be obtained; risks that any of the closing conditions to the transaction may not be satisfied in a timely manner; the failure to realize the benefits of the transaction or FitLife’s strategy; the effect of the announcement of the transaction on the ability of the Company or Irwin to retain customers and key personnel and to maintain relationships with suppliers, and on their operating results and business generally; and potential litigation in connection with the transaction.
Additionally, there may be other risks and uncertainties that FitLife is unable to currently identify or that FitLife does not currently expect to have a material impact on its business. Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of FitLife's management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. FitLife disclaims and does not undertake any obligation to update or revise any forward-looking statement, except as required by applicable law. A detailed discussion of some of the significant risks and uncertainties which may cause results and events to differ materially from such forward-looking statements is included in the "Risk Factors" section of FitLife's Annual Report on Form 10-K, as modified by subsequent Quarterly Reports on Forms 10-Q and Current Reports on Form 8-K.
investor@fitlifebrands.com
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