Smart for Life, Inc. (NASDAQ: SMFL) saw its shares climb Monday, as the company, a global leader in the Health & Wellness sector marketing and manufacturing nutritional supplements and foods worldwide, today provided a business update on the previously announced pending acquisition.
This acquisition target is currently generating estimated revenue in excess of $10 million and over $2 million of EBITDA for the trailing twelve months. The acquisition is a validation of the Company’s Buy-and-Build strategy designed to establish Smart for Life as a major international force in the Health & Wellness sector.
“We are excited to announce that internal due diligence has been concluded and we are finalizing the formal audit for the planned acquisition,” stated CEO Darren Minton. “In addition, we expect definitive agreements, including the Stock Purchase Agreement, Seller Notes and Employment Agreement will be executed shortly. Upon closing, this would be our largest and most profitable acquisition to date, and we look forward to integrating this brand into our exciting family of products.”
The Company also noted that a material economic benefit of the acquisition is the immediate migration of the acquisition’s contract manufacturing business to the Company’s Bonne Santé Natural Manufacturing facility in Miami. The acquisition’s contract manufacturing expenditures are currently in excess of $5 million annually.
Completion of the acquisition is subject to a number of conditions including finalization of the audit and financing.
SMFL shares gained 0.67 cents, or 5.4%, to 13 cents.
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