Smart for Life Announces Completion of Audit for Pending Acquisition
Smart for Life, Inc. (Nasdaq: SMFL) expects to acquire a premier eCommerce nutraceuticals company, contributing over $8 million of annualized revenue and positive net income. The acquisition is subject to financing and customary closing conditions, with the company aiming to close in early 2024. Smart for Life plans to migrate the contract manufacturing of the acquisition to its facilities, expecting to realize additional economic benefits. The acquisition's management team has built a strong brand with a loyal customer base, presenting opportunities for substantial brand extensions.
The planned acquisition by Smart for Life of a premier eCommerce nutraceuticals company is a strategic move that could significantly bolster the company's revenue streams and profitability. The anticipated addition of more than $8 million in annualized revenue and positive net income is a clear indicator of the acquired entity's robust financial health and market presence. This move is particularly noteworthy considering Smart for Life's recent public listing in 2022, suggesting a rapid expansion strategy that could appeal to investors seeking growth-oriented stocks.
Integrating the acquired company's manufacturing with Smart for Life's existing facilities could lead to cost synergies, potentially improving margins through reduced overhead costs and streamlined operations. Moreover, the ability to monetize the acquired customer base through brand extensions could lead to increased sales volume and customer retention, further enhancing the financial outlook of the acquisition. However, it is crucial to monitor the execution of the integration process as it could also pose risks such as operational disruptions or cultural clashes that may impact the anticipated benefits.
Investors should also be aware of the financing condition mentioned, as the terms of financing could affect Smart for Life's debt profile and financial flexibility. The success of the acquisition will hinge not only on the immediate financial contribution but also on the long-term strategic fit within Smart for Life's business model.
The acquisition of an eCommerce nutraceuticals company by Smart for Life taps into the growing trend of online health and wellness product sales. The nutraceutical industry has seen a surge in demand, driven by increased health consciousness among consumers and the convenience of online shopping. Smart for Life's focus on nutritional foods and supplements positions the company well within this expanding market.
By acquiring a company with a 'world class brand' and a 'deep and loyal customer base', Smart for Life could significantly enhance its market share and brand recognition. The move indicates an aggressive growth strategy that leverages both organic and inorganic routes to scale up operations. The transition of contract manufacturing to Smart for Life's facilities could also offer a competitive advantage by shortening the supply chain and improving response times to market demand.
The long-term success of the acquisition will depend on Smart for Life's ability to integrate the new brand into its portfolio without diluting its value. The company's ability to execute substantial brand extensions while maintaining the acquired brand's core values and customer appeal will be a key factor in realizing the full potential of this strategic move.
The acquisition's completion is contingent upon financing and customary closing conditions, which typically include regulatory approvals, consents from third parties and the satisfaction of any outstanding conditions specified in the acquisition agreement. It is essential for Smart for Life to navigate these legal and regulatory hurdles effectively to avoid any delays or impediments to the closure of the deal.
Additionally, the integration of contract manufacturing operations post-acquisition will require careful legal scrutiny to ensure compliance with all relevant labor, environmental and manufacturing regulations. The legal complexities of such a business combination must be managed adeptly to minimize risk and facilitate a smooth transition.
While the press release does not constitute an offer to sell securities, it is an important communication to stakeholders and must adhere to regulations governing public disclosures. The legal considerations of the acquisition, particularly in the context of Smart for Life's status as a publicly-traded entity, will be critical in maintaining transparency and shareholder trust throughout the process.
01/05/2024 - 08:00 AM
Acquisition Expected to Contribute More than $8 Million of Annualized Revenue and Positive Net Income
MIAMI, Jan. 05, 2024 (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 completed the audit for the planned acquisition of a premier eCommerce nutraceuticals company with operations in North America. The acquisition is expected to close within the next several weeks and is subject to financing and customary closing conditions.
“We have now completed the audit for our acquisition and expect to close in early 2024,” stated Darren Minton, CEO of Smart for Life. “Once closed, this will be one of our largest acquisitions since going public in 2022. This eCommerce company is currently generating estimated revenue in excess of $8 million and its operations are net income positive.”
“On completion of the acquisition, we expect to realize an additional economic benefit when we migrate the contract manufacturing of the acquisition to our facilities at Smart for Life,” added A.J. Cervantes, Jr., Executive Chairman at Smart for Life. “The acquisition’s management team has created a world class brand with a deep and loyal customer base and we believe that Smart for Life can monetize that customer base with substantial brand extensions. We look forward to announcing additional details shortly when the acquisition closes.”
Completion of the acquisition is subject to a number of conditions including successful financing. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Smart for Life.
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 and wellness. Structured as a publicly held global 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 $300 million in revenues by the fourth quarter of 2026. 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 currently operates five subsidiaries including Doctors Scientific Organica, Nexus Offers, Bonne Santé Natural Manufacturing, GSP Nutrition/Sports Illustrated Nutrition and Ceautamed Worldwide/Greens First. For more information about Smart for Life, please visit: www.smartforlifecorp.com
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.
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
Smart for Life expects to close the acquisition in early 2024.
The eCommerce nutraceuticals company is currently generating estimated revenue in excess of $8 million.
The acquisition is expected to have a positive impact on Smart for Life's net income, as the operations of the eCommerce company are net income positive.
Smart for Life expects to realize additional economic benefits by migrating the contract manufacturing of the acquisition to its facilities.
The acquisition presents opportunities for Smart for Life to monetize the customer base with substantial brand extensions.
