Nutribands revenue set to be $18.4m in first year alone. $42.2m in year two! (Na-no worries...)
Verus Foods, Inc @Verus_Foods
We've received a lot of questions on the Nutribrands acquisition and related 8-K filing, so I thought I would clear up a few things. This is a tremendous deal based upon its potential scale. Per the Agreement as filed with the 8-K...
Nutribrands min post-closing revenue targets for year 1 & 2 are $18.4M and $42.2M, respectively, and their net income contributions for year 1 & 2 are 8.3% and 13.9%, respectively.
Additionally, Nutribrands 5-year post closing revenue target is $367M with a net income of 21.9%.
It is important to note this transaction required no equity and the $8 million in working capital funding will be provided by a combination of our foreign revolving LOC and a credit wrap of Nutribrands' customers via our Euler Hermes relationship.
Additionally, the earn-out provision requires achievement of Nutribrands post-closing financial plan to receive any earn-out proceeds. Simply put, the acquisition structure largely de-risks the Nutribrands transaction from day one.