#Sweden #Gothenburg #Chapter 11 #Zurvita #Zinzino AB

Zinzino AB Expands Its Reach with Zurvita Acquisition Plans

In a significant move, Zinzino AB, a Swedish direct selling company, has announced its intent to offer debtor-in-possession (DIP) financing to Zurvita Inc., a North American direct selling company that recently filed for Chapter 11 bankruptcy. This strategic decision was unveiled through a press release dated June 17, 2024.

On December 20, 2024, Zurvita marked a pivotal shift in its business trajectory by initiating bankruptcy proceedings, seeking to restructure its operations while maintaining continuity. Zinzino’s offer to provide $4.5 million in DIP financing highlights its commitment to ensuring a seamless transition through this transformative period.

A New Strategy for Growth

Prior to this financing agreement, Zinzino had expressed interest in acquiring 100% of Zurvita’s shares. However, after negotiations, it became clear that acquiring the company's assets during the Chapter 11 process would be more beneficial. By becoming a financier under this bankruptcy framework, Zinzino is also making a stalking horse bid, positioning itself as a leading contender for acquiring Zurvita’s assets once the bidding process concludes.

If Zinzino’s bid is successful, the DIP financing will morph into part of the overall purchase price, enabling the swift settlement of debts and ensuring that Zurvita can focus on rebuilding its business. Should another offer be accepted, Zinzino will be reimbursed for related costs, safeguarding their investment.

The Zurvita Brand and Market Position

Founded in 2009, Zurvita has established itself as a prominent player in the health and wellness market, offering a diverse portfolio of innovative products throughout the United States, Canada, and Mexico. With annual sales approaching $30 million, the company's solid profit margins underscore its market potential. The partnership with Zinzino could amplify this further, leveraging synergies from both company portfolios.

Zinzino’s holistic approach, which focuses on individualized and technology-driven nutritional solutions, is set to enhance Zurvita’s offerings. Both companies share a vision of personalized health solutions, marking a fruitful collaboration in addressing consumer needs in an evolving market.

Leaders Share Their Vision

Dag Bergheim Pettersen, the CEO of Zinzino, emphasized the importance of tailored solutions for consumers, stating, "Individualized advice and tailored solutions are the future, and not just in health and wellness." This philosophy aligns seamlessly with Zurvita’s aim of delivering high-quality products to its customers.

Jay Shafer, Zurvita’s CEO and co-founder, voiced optimism for the future, reinforcing that after evaluating various options, this agreement offers the best opportunity for Zurvita to continue its mission and provide stability to its staff and consultants. As the situation develops, both companies look forward to what's next on the horizon.

Conclusion

Zinzino’s entry into Zurvita’s restructuring process represents a significant strategic move aimed at enhancing market presence and fostering sustainable growth. The partnership reflects a commitment to innovation and consumer-focused solutions, setting the stage for a formidable alliance in the health and wellness sector. Investors and consumers alike will undoubtedly keep a close eye on this evolving narrative, with potential implications for the broader industry landscape.

For further updates, interested parties can reach out to Zinzino for more detailed information regarding this transaction and its anticipated outcomes.

For media inquiries, please contact:
Dag Bergheim Pettersen
CEO Zinzino
Phone: +47 (0) 932 25 700
Website: www.zinzino.com