Colorado-based NewAge, Inc. has completed its official acquisition of ARIIX. The merger agreement, which was announced in July of this year, will combine the revenues of these two entities, plus four more e-commerce and direct selling companies: Zennoa, LIMU, MaVie and Shannen.
“We are very pleased to be able to fully converge these great companies now that the merger is complete,” says Brent Willis, NewAge Chief Executive Officer. “Both the revenue and cost synergies of the combined organization will start to be recognized immediately in Q4, in our financial results. Importantly, this merger represents a major strengthening for NewAge in its direct-to-consumer model where we see the most significant opportunities for growth and profitability. We believe we now have the scale, the team, the brands, and the financial strength to drive excellent growth and return for shareholders and all of our valued independent representatives and consultants worldwide.”
Together, the companies’ combined annual net revenue is expected to exceed $500 million, with a blended gross margin of 70 percent and an expected EBITDA of more than $30 million. ARIIX’s Chief Executive Officer Fred Cooper will now join the NewAge Board of Directors.
“Completing this merger with NewAge is a tremendous milestone for all of our independent representatives, employees, and customers who have been a part of ARIIX over the last nine years,” Cooper says. “We are better positioned than ever before to continue to disrupt the industry and further our strategy to become the world’s leading social selling and distribution company. We believe providing our representatives with access to more markets, more products, and more opportunities will accelerate our organic growth and incentivize our leaders to grow their businesses at an even faster pace. We believe we are very well positioned to take advantage of global consumer trends to buy direct and capture additional market share.”