#Sweden #Gothenburg #Zinzino #Merger #It Works!

Zinzino Merges with It Works!: A Strategic Move for Global Expansion

Zinzino AB (PUBL), the Swedish health and wellness company, has made headlines with its recent acquisition of the US-based direct sales firm It Works!. This strategic merger aims to reinforce Zinzino's distribution capabilities and open up new markets in North America and Europe, ultimately enhancing its revenue potential and product reach.

Details of the Merger

On January 26, 2026, Zinzino announced that it had entered a binding agreement and closed the transaction to merge with It Works!. This deal, which is an all-share transaction, has granted Zinzino access to It Works!' operational assets in the US, including inventory, distributor agreements, customer agreements, and intellectual property rights. The total purchase price for this acquisition is set at USD 30 million.

Interestingly, the payment for this substantial purchase will be made through a directed set-off issue of 1,843,840 B-shares of Zinzino. The subscription price for these shares was established at SEK 145.62 each, reflecting the volume-weighted average price of Zinzino shares just before the merger was completed. Additionally, there could be an estimated USD 4 million paid to It Works! over the next five years based on future sales performance, also settled in newly issued B-shares.

Impact on Revenue and Growth Projections

With the merger, Zinzino anticipates generating over USD 60 million in additional revenue in 2026 alone. This forecast is bolstered by the synergy between the two companies, utilizing Zinzino's test-based product strategy and It Works!’ strengths in direct sales within the health and beauty sector.

The cohesion between Zinzino’s existing products and It Works!’ innovative offerings is expected to enhance profitability. The merger not only strengthens Zinzino's financial position but also allows it to leverage its technical platform and organizational structure to drive successful growth opportunities.

Visionary Leadership and Market Position

The executives from both companies came together to recognize the significance of personalized solutions in health and wellness. Dag Bergheim Pettersen, CEO of Zinzino, and Mark Pentecost, President and Founder of It Works!, stated, “Individual advice and tailor-made solutions are the future, and not just in health and wellness.” This feedback emphasizes their commitment to transforming the direct sales experience for consumers.

With extensive experience in their respective sectors, Pettersen and Pentecost are poised to lead this evolving landscape towards a more personalized shopping experience, indicating that the merger could act as a catalyst for enhanced community engagement and customer loyalty.

Strategic Significance of the Directed Issue

The directed issue of new shares serves a dual purpose. It fulfills Zinzino’s obligations as delineated in the asset and share transfer agreement and enables the company to perform significant acquisitions in the future. The decision to engage in a directed issue demonstrates Zinzino's commitment to growth and maintaining shareholder interests, as it is viewed as strategically advantageous.

The merger culminates with the total shares in Zinzino increasing from 36,319,540 to 38,163,380, with the company experiencing a minimal dilution effect of roughly 4.83% of total shares. This alteration is designed to align with the company’s best interests, ensuring that future expansion opportunities remain feasible.

Conclusion

In summary, Zinzino's merger with It Works! is a major step in the company's pursuit of global growth and enhanced distribution capabilities. By merging these two innovative forces, Zinzino positions itself to not only improve its product offerings but also to strengthen its market presence. This partnership heralds a new era of personalized health and well-being solutions catered to a global audience, promoting the promise of sustainable and profitable growth for years to come.