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May 11, 2018 — The target acquisition is an established, profitable, e-commerce retailer. The company markets several successful, proprietary brands, in the health and wellness sector. The products are developed and produced in collaboration with US-based, private label, certified, contract manufacturers.
Current B to C market channels are primarily through the premier e-commerce platforms, that manage most of the payment and fulfillment mechanics. Growth opportunities are plentiful and include adding products to the established brands, organic growth through enhanced promotion and expanding sales to brick and mortar retailers
$16 million as debt or debt plus minority equity (uni-tranche) funding is sought, by an exceptionally qualified management buy-in team. Equity considerations would be based on an opportunistic acquisition price of 2.7 X TTM EBITDA (Market value +/-5X EBITDA). The target business for this transaction is under a signed LOI with the buy-in management entity.
The current owner/managers will remain and reinvest to retain a 25% equity position in the new entity, based on their confidence that the new management resources will allow the company to achieve significantly higher levels of growth and profitability, to the benefit of all involved.