Health company Zinzino is acquiring distributor and customer databases, inventory and intellectual property from US-based Uzesta through subsidiaries in Taiwan, Hong Kong and Thailand.
Uzesta engages in direct sales of health products in Asia and has annual sales of approximately USD 4 million.
The fixed purchase price amounts to USD 0.8 million in cash at closing, with an additional USD 0.4 million in deferred payment. In addition, performance-based earn-out payments may amount to a maximum of USD 6 million. The total purchase price may thus reach USD 7.2 million.
Of the earn-out payments, 91 percent will be paid in newly issued Zinzino shares. The cash portion will be financed with existing cash.
Zinzino expects operational synergies through its existing infrastructure and regional offices, which are expected to contribute to cost-efficient expansion and gradually improved profitability.
