Smart for Life Announces Update on Prospective Acquisitions
21 August 2024 - 10:30PM
Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the
“Company”), a distinguished leader in the Health & Wellness
sector specializing in the marketing and manufacturing of
nutritional supplements and foods, announced today the potential
expansion of the Company’s acquisition pipeline and provided an
update on its M&A activities.
The Company is currently negotiating the
acquisition of four profitable Health & Wellness targets with
several additional prospects in exploratory discussions as part of
the Company’s post-restructuring initiatives. These acquisitions
include the following:
- Purely Optimal
Nutrition – Previously announced acquisition. The Company and the
Purely Optimal management are actively collaborating on the
restructuring of their sales initiatives to improve Purely
Optimal’s profitability prior to closing of the acquisition.
- Liquid
Manufacturer – Contract manufacturer with sales of approximately
$12 million and profitable in the prior fiscal year.
- Established
Supplement Brand – Historical sales of approximately $10 million
annually and profitable through nutraceutical products.
- Wholesale
Manufacturer and Distributor – Generating revenue of approximately
$8 million and profitable in retail channels.
“Smart for Life is committed to pursuing revenue
and earnings growth through the acquisition of profitable companies
focused on nutritional supplements and functional foods,” stated
A.J. Cervantes, Jr., Chairman of Smart for Life. “Although our
acquisition activity was paused during our restructuring
initiatives, we are now aggressively advancing those M&A
activities. Upon completing our forthcoming 10-K and 10-Q filings,
we intend to significantly ramp up M&A activity, building on
the potential acquisitions identified.”
Smart for Life is seeking profitable companies
in the nutraceutical industry across the United States as well as
prospective foreign acquisitions, preliminarily targeting companies
with between $5 million and $25 million in annual revenue. We
pursue targets that are committed to innovation, high quality
standards, organic growth, and that have a keen interest in
partnering with a publicly held organization.
“We believe this pipeline represents a
significant addition to our M&A initiatives,” stated Darren
Minton, Smart for Life’s Chief Executive Officer. “While there is
no assurance that any particular acquisition will be completed, we
believe the growing acquisition pipeline creates an enormous
prospective opportunity for the Company. We look forward to keeping
everyone apprised of our developments as we continue to implement
our strategy and drive toward our publicly stated goal of $100
million in revenue through both organic growth and M&A
initiatives.”
Completion of any acquisitions in the Company’s
pipeline is subject to a number of conditions including successful
due diligence and financing.
About Smart for Life, Inc.
Smart for Life, Inc. (Nasdaq: SMFL) is an
emerging growth company in the nutraceutical industry, committed to
delivering innovative solutions that promote Health & Wellness.
With a focus on research-driven formulations and consumer-centric
approaches, Smart for Life is dedicated to redefining the
boundaries of nutritional science. The Company is engaged in the
development, marketing, manufacturing, acquisition, operation and
sale of a broad spectrum of nutritional and products. 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 and related products as
well as acquiring other profitable companies, encompassing brands,
manufacturing and distribution channels. The Company recently
concluded the execution of a restructuring plan including
recapitalization of the Company with equity and debt financings,
the sale of certain non-performing assets, and the successful
liquidation of the Company’s senior debt facility. In addition, the
Company converted substantial debt obligations to equity materially
improving the Company’s balance sheet. 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, LLCTel: (212)
671-1021SMFL@crescendo-ir.com
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