MusclePharm Enters into Agreement for the Sale of BioZone Laboratories:
Denver, CO – April 27, 2016– MusclePharm Corporation (MSLP) announced today that it has entered into a definitive agreement for the sale of its wholly-owned subsidiary, BioZone Laboratories, Inc. (“BioZone”).
The purchase price is $9,800,000, subject to working capital and other adjustments, with $1,500,000 being subject to an earn-out based on the business’s performance in the twelve months following closing. Subject to customary closing conditions the Company expects to close the transaction in the second fiscal quarter. After the transaction closes the Company will maintain a strategic relationship with Biozone through a manufacturing and supply agreement as well as a supply arrangement with the parent company of the Buyer, Flavor Producers, Inc.
The pending sale of BioZone is the latest step in MusclePharm’s restructuring plan. “This transaction represents the continued execution of our restructuring plan, which has already put the company in a stronger financial position going forward” said MusclePharm Interim CEO, President and Chairman of the Board, Ryan Drexler. “The cash made available from this transaction will provide us the ability to grow with strategic partners while gaining the ability to address current debt obligations.”
BioZone is a manufacturer and developer of over-the-counter drugs, supplements, and nutritional supplements. BioZone manufactures a portion of MusclePharm’s product portfolio: Combat ProGels, a high-quality protein gel in a convenient and portable travel pouch; and MusclePharm Carnitine, a stimulant-free energy booster, and fat metabolizer.