FitLife Brands to acquire substantially all assets of MusclePharm for $18.5M

FITLIFE BRANDS, INC.

Purchase price of $18.5M all-cash; funded from cash on hand and a $10M term loan from First Citizens Bank at SOFR+275bps.
Transaction expected to close by October 16, 2023; FitLife assumes no liabilities other than de minimis cure costs.
MusclePharm generating ~$1.2-1.5M monthly revenue at 25-30% gross margins during bankruptcy.
FitLife plans to internalize online sales and restore wholesale distribution, targeting higher margins.
Deal is expected to be highly accretive to shareholders after ~$500k in one-time transaction costs.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

FITLIFE BRANDS, INC. entered into Asset Purchase and Sale Agreement with MusclePharm Corporation valued at $18.5 million (effective 2023-09-21).

Action: entry
Agreement: asset purchase
Counterparty: MusclePharm Corporation
Value: $18.5 million
Effective: 2023-09-21

Exact text from the filing

On September 21, 2023, the U.S. Bankruptcy Court for the District of Nevada (“ Bankruptcy Court ”) approved the purchase by FitLife Brands, Inc. or its designee or affiliate (the “ Company ”) of substantially all assets of MusclePharm Corporation (“ MusclePharm ”), pursuant to an Asset Purchase and Sale Agreement by and between the Company and MusclePharm (the “ APA ”).

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FITLIFE BRANDS, INC. filing history →

Source: SEC EDGAR

accession 0001437749-23-026948

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