Pazoo unveils LoI to take over DMC Athletics & Rehabilitation.
M2 EQUITYBITES-October 4, 2012-Pazoo unveils LoI to take over DMC Athletics & Rehabilitation(C)2012 M2 COMMUNICATIONS http://www.m2.com
4 October 2012 - US health and wellness products retailer Pazoo Inc (OTCBB:PZOO) announced on Thursday it had signed a binding letter of intent (LoI) to acquire New Jersey-based orthopedic and sports injuries treatment specialist DMC Athletics & Rehabilitation Inc.
In exchange for DMC's shares, Pazoo will provide a USD1.5m (EUR1.2m) two-year balloon note at 3% to the owners of the entity plus a potential earn-out over the next two years. The buyer said it expects DMC's soon-to-be-estimated valuation to be well above the payable consideration and added that public companies of the same class elicit a 12-14 multiple in the market.
DMC represents a group of outpatient orthopedic physical therapy and personal training centres located in Morris County, New Jersey. Last year, it recorded revenues of some USD1.4m and profit of around USD185,000. For the current year, the group is seen to experience a revenue growth of over 40% year-on-year as well as a rise of at least 80% in profit. It has already exceeded the 2011 figures in the first nine months of 2012.
Following the acquisition, DMC's centres will be used as a testing ground and laboratory for new products. The transaction will allow Pazoo to be a self-sufficient operating business, its chief executive David Cunic stated.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 4, 2012|
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