DENVER--(BUSINESS WIRE)--Scott’s Liquid Gold (SLGD) today announced it has entered into a definitive agreement with Elevation Labs Colorado (f/k/a Colorado Quality Products LLC), a beauty and personal care manufacturer, under which Elevation will acquire all of Scott’s manufacturing operation in Denver, Colorado.
Elevation will assume Scott’s remaining facilities & corporate office leases, and the transaction will yield net cash proceeds to Scott’s of $0.5 million.
The companies also agreed to enter into a manufacturing and supply agreement through mid-2020, under which the Denver facility will manufacture Scott’s products during the transition period to long-term manufacturing partners. Products will be provided at current cost levels during the transition. Elevation intends to retain the Scott’s work force for Elevation’s ongoing manufacturing operations.
These agreements are an important step to more closely align Scott’s with best-in-class partners to efficiently manufacture and deliver products to customers.
Mark Goldstein, CEO and Chairman of Scott's, said, “This transaction is a significant step forward in our efforts to operate more efficiently, with a leaner, more agile infrastructure, and with greater operational and financial flexibility. It also allows us to evaluate, select, and benefit from the manufacturing, R&D, and infrastructure expertise of new partners, and focus our strategic efforts towards the growth and marketing our high-quality, high-value brands.
I’d like to personally thank our Scott’s Liquid Gold operational team, many of who have been with the company for decades. We are grateful for your efforts to build and grow Scott’s Liquid Gold’s products into the strong, well-known offerings they are today.”
The transaction is expected to close on March 1st, 2020. The closing of the Transaction is subject to, among other things, the parties receiving required third-party consents and entering into a manufacturing and supply agreement pursuant to which Elevation will manufacture certain of the Company’s and Neoteric Cosmetics’ products.
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