USA: vitacost.com presents merger offer to MotherNature.com
vitacost.com, a leading online wholesaler of nutritional supplements and comprehensive resource for nutraceutical information, Thursday announced that it has submitted a formal offer letter to merge with MotherNature.com (Nasdaq:MTHR) on a one-for-one share basis. vitacost.com presently has approximately 27,425,000 shares outstanding, and MotherNature.com approximately 15,153,590. "Our offer represents a real opportunity to grow our mutual businesses and shareholder value as opposed to the recently tendered cash offer for MotherNature.com, which actually results in a substantial loss for many shareholders," said Dr. Allen Josephs, president of vitacost.com. "By merging vitacost.com's business model, management and patented and patent-pending products with MotherNature.com's customer base and cash reserves, the new company would be poised for explosive growth." Last month, vitacost.com moved its corporate headquarters from Springfield, Ill. to a new, larger facility, located in Boynton Beach, Fla., designed to accommodate up to $100 million in sales per year. In addition, vitacost.com has added key management with the addition of Kerry Danchak, vice president of operations and Joel Kovin, chief financial officer. Danchak most recently led the distribution operations at Rexall Sundown, which was recently purchased for $1.7 billion and Kovin has served as CFO for three public companies as well as audit manager for Deloitte & Touche. "vitacost.com currently has a run rate of approximately $4.8 million in annualized sales, representing a greater than 100 percent increase over prior quarters. This was accomplished through smart, managed growth, targeted marketing, low overhead and streamlined back-end operations," said Joel Kovin, vitacost.com's chief financial officer. "By combining our two companies and eliminating duplicative overhead, the resulting operation is projected to exceed $19 million in annualized revenue and over $1 million in net profit by the first year."
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