DALLAS, Dec. 18, 2013 /PRNewswire/ -- John Rochon Jr., chairman of CVSL Inc.'s investment committee, today commented on the most recent development regarding CVSL's bid to acquire Blyth, Inc.
CVSL [stock symbol: CVSL] recently offered $16.75 in cash for the public outstanding shares of Blyth, representing 57% of total shares outstanding, for $160,000,000. The offer was based on Blyth management remaining with the company after a transaction, in a downline private subsidiary of CVSL. Last week Blyth said that it did not intend to accept CVSL's offer.
"CVSL's decision to make a public bid for Blyth was driven by strategic considerations aimed at maximizing CVSL's shareholder value. CVSL's executive team has been doing transactions for many years and we did not necessarily expect Blyth to say yes to our first offer," said Mr. Rochon.
"CVSL follows a certain process when we make acquisitions. That process has worked well for us in the past. It includes working hand-in-hand with current management to build a better company and to contribute to the value of CVSL. At this point, Blyth's management obviously is not on the same page with us.
"Nevertheless, based on our history, we don't necessarily believe the final chapter has been written on this transaction. However, more time is clearly needed before we know if there is ever to be a transaction down the road at some point. We hope to have the opportunity to work with Blyth in the future, because we take the long view and we never close doors when we believe there is potential for the future. That is how we feel about Blyth at the moment," said Mr. Rochon.
"CVSL has built a $150 million company in less than a year. We have protected shareholders from dilution while we've acquired multiple companies. We're making these CVSL companies stronger and growing their revenue and profitability. We'll continue to make smart acquisitions, while avoiding dilution to our shareholders.
"Our potential deal funnel of companies that are candidates for acquisition exceeds $8 billion in combined revenue. Obviously, not all will become part of CVSL. But the pool of potential acquisitions is very large. Blyth is relatively small in the long-term strategy of what we are trying to accomplish. Our business model is working. During 2014 and beyond, CVSL will continue to expand through smart acquisitions of various sizes," said Mr. Rochon.
CVSL is a growing group of micro-enterprise companies that connect social media networks into an ever-expanding virtual "community" of social commerce. CVSL companies currently include The Longaberger Company, a 40-year old maker of hand-crafted baskets and other home decor items; Your Inspiration At Home, an award-winning maker of hand-crafted spices and other gourmet food items from around the world; Tomboy Tools, a direct seller of tools designed for women as well as home security systems; and Agel Enterprises, a global seller of nutritional products in gel form as well as a skin care line sold under the Ageless™ brand, operating in 40 countries. CVSL also has signed a letter of intent with Golden Girls, which purchases gold and tradable jewelry; Paperly, which offers a line of custom stationery and other personalized products; and My Secret Kitchen, a U.K.-based seller of gourmet food products.
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SOURCE CVSL Inc.