Redux Holdings announced today that they have acquired the remaining shares of Koloseum Nutritional Sciences ("KNS") that they didn't already own. (FYI: they owned 30% before today's announcement.) This has obviously been in the works for a while as the owners of KNS, Rick Robinette and Milos Sarcev, have been part of the Naturade team for many months now as Chief Operating Officer and Chief Science Officer, respectively.
So what does this transaction really mean? Is it important?
Well, here is what I think it does for the Company. First, it provides a new product line to market alongside the Naturade brand to a large network that is already in place. Naturade is in stores all across the United States (as well as some international locations) like grocery stores, natural food stores, Sam's Clubs, vitamin stores and many more. The Naturade brand typically targets the mass audience (moms and pops of the world).
The KNS line targets athletes.
Why does it matter? Well, is there a more efficient way to introduce leading edge, proprietary, nutritional formulas into your "everyday" product line than to take it from a sister product line that already produces supplements for world class athletes?
I have met with both Rick Robinette and Milos Sarcev and believe they are both savvy businessmen. Rick is a marketing guy with many industry credits to his name. He has been around the industry for about 20 years and is well connected with buyers (these are the people that work for the retailers and represent the contact point that you want to know in order to get your products the required shelf space.)
Milos Sarcev has been quoted by top fitness magazine editors (FLEX Magizine) as having one of the best minds of our age regarding health and nutrition and how it relates to developing the body. Milos was the 1989 Mr. Universe and has an incredible ability to train high end (mostly professional) athletes and maximize their performance. Now that KNS will be available on a wider distribution, athletes around the globe will be able to get the benefits of Milos’ most advanced nutritional formulas.
Now that Naturade has exited bankruptcy and appears to be on sound footing financially, I am looking forward to seeing how that Company grows its distribution network. Adding KNS to the mix should add another quality product to the offering and should be a step in the right direction.
DISCLOSURE: I am a large holder of Redux stock as I assisted Redux in becoming a public entity back in 2006. I continue to work with the Company on IR and Capital Markets Advisory issues and receive compensation for my services.
