Scott’s Liquid Gold-Inc. Acquires Prell®, Denorex® and Zincon® Brands
DENVER–(BUSINESS WIRE)–Scott’s Liquid Gold-Inc. (OTC BB: “SLGD”) announced today its
acquisition of the Prell®, Denorex® and Zincon®
brands of hair and scalp care products from Ultimark Products, Inc. for
a purchase price of approximately $9.1 million, subject to adjustment.
“We are excited about our acquisition of these brands. Prell®,
Denorex® and Zincon® products will be great
additions to our existing health and beauty care portfolio of products,”
said Mark Goldstein, Chairman, President and CEO of SLGD. “This
investment represents an important strategic opportunity that will
benefit our shareholders, consumers, customers, and employees.”
In connection with the transaction, SLGD terminated its revolving credit
facility with Summit Financial Resources, L.P. and entered into a Credit
Agreement with JPMorgan Chase Bank, N.A. (“Chase”) pursuant to which
Chase provided a term loan of $2.4 million and a revolving credit
facility of $4 million, which will be used to finance a portion of the
Ultimark transaction and for SLGD’s general corporate purposes and
working capital.
Holland & Hart LLP and Threadstone Advisors LLC represented SLGD in both
transactions.
Company Overview
Scott’s Liquid Gold-Inc. develops, manufactures, markets and sells
quality household and skin and hair care products. The Company’s most
well-recognized product, Scott’s Liquid Gold® wood cleaner
and preservative, has been sold in the United States for over 60 years.
The Company’s skin care products consist of Alpha® Skin Care
products and Neoteric Diabetic® healing cream. In addition,
the Company is the exclusive distributor in the United States of
Montagne Jeunesse/7th Heaven face masque and skin care sachets and the
exclusive distributor in the specialty retailer channel in the United
States of Batiste dry shampoo, which products are manufactured by two
other companies. The Company is headquartered in Denver, Colorado, and
its common stock trades on the OTC Bulletin Board under the symbol
“SLGD”.
This press release may contain “forward-looking” statements within
the meaning of U.S. federal securities laws. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements and the
Company’s performance inherently involve risks and uncertainties that
could cause actual results to differ materially from such
forward-looking statements. Factors that would cause or contribute to
such differences include, but are not limited to, changing consumer
preferences and the continued acceptance of each of our significant
products in the marketplace; the degree of success of any new product or
product line introduction by us; competitive factors, including any
decrease in distribution of (i.e., retail stores carrying) our
significant products; continuation of our distributorship agreements for
Montagne Jeunesse/7th Heaven face masque and
skin care sachets and Batiste dry shampoo; the need for effective
advertising of our products and limited resources available for such
advertising; new competitive products and/or technological changes;
dependence upon third party vendors and upon sales to major customers;
the availability of necessary raw materials and potential increases in
the prices of these raw materials; changes in the regulation of our
products, including applicable environmental regulations and U.S. Food
and Drug Administration regulations; continuing availability of
financing on terms and conditions that are acceptable to us; the degree
of success of the integration of product lines or businesses we may
acquire; future losses which could affect our liquidity; the loss of any
executive officer; and other risks discussed in this release and in the
Company’s periodic report filings with the Securities and Exchange
Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or
changes after the date of this release.
Contacts
Scott’s Liquid Gold-Inc.
Mark E. Goldstein, 303-576-6110
