DENVER, April 27, 2016 /PRNewswire/ -- MusclePharm Corporation (OTCQB: MSLP) ("MusclePharm" or the "Company"), a scientifically-driven, performance-lifestyle sports nutrition company, 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 ProGelsTM, a high-quality protein gel in a convenient and portable travel pouch; and MusclePharm Carnitine, a stimulant-free energy booster, and fat metabolizer.
About MusclePharm Corporation
MusclePharm® is a scientifically-driven, performance lifestyle company that develops, manufactures, markets and distributes branded nutritional supplements. The company offers a range of powders, capsules, tablets and gels. Its portfolio of recognized brands includes MusclePharm® Sport Series, Black Label and Core Series, Arnold Schwarzenegger Series™ and FitMiss™, which are available in more than 120 countries—over 45,000 retail outlets worldwide. The clinically-proven supplements are developed through a six-stage research process utilizing the expertise of leading nutritional scientists, doctors and universities. MusclePharm is the innovator of the sports nutrition industry. For more information, visit http://www.musclepharm.com. To sign up to receive MusclePharm news via email, please visit http://ir.musclepharmcorp.com/email-alerts.
SOURCE MusclePharm Corporation