News & Buzz Press-Releases

NewAge and ARIIX Combine to Create a >$500 Million Global Enterprise

NewAge Agrees to Combine with ARIIX and Four Additional
E-Commerce/Direct Selling Companies to Create a
>$500 Million Global Enterprise

NewAge Beverages Corporation (Nasdaq: NBEV), the omni-channel Colorado-based healthy and organic products company, today announced that it has entered into a definitive agreement to acquire ARIIX, together with four additional companies in the e-commerce and direct selling channels. The combination will create a global firm with estimated pro forma revenues in excess of $500 million across more than 80 countries worldwide.

NewAge and ARIIX have agreed to create a leading health and wellness firm with a unique omni-channel route to market, depth in the e-commerce and direct selling channels, a team of more than 400,000 independent representatives, and a portfolio of healthy products unrivaled in the industry. Merging into the combined company are:

NewAge

  • One of the fastest-growing beverage companies worldwide with penetration in over 60 countries and a unique omni-channel route to market

ARIIX

  • One of the fastest-growing direct selling companies with over 17% CAGR 2015-2019, penetration in over 35 countries, and a leading nutritional performance portfolio

Zennoa

  • Established in 2016 with its largest presence in Japan and a portfolio of superfood-based dietary supplements, beverages and fermented foods

LIMU

  • Global leader in Fucoidan-rich, seaweed-based nutritional products and beverages with over 2,000 independent research studies on its proprietary supernutrient

MaVie

  • DNA mapping and wellness company with predictive genomic sequencing and a range of nutritional products customized to individuals’ DNA makeup

Shannen

  • Award-winning Indonesian skincare and beauty company founded in 2018 with sales of over $25 million in first two years of operations

Brent Willis, Chief Executive Officer of NewAge, who will be the CEO of the newly combined company, said, “We are very excited that these companies are coming together to create a powerful global enterprise with tremendous growth potential. We will have the team, the scale, the profitability, the brands, and the reach to drive superior growth and return for shareholders and all of our valued independent representatives and consultants worldwide. We believe we are well positioned in this new business environment with more than 80% of products ordered and fulfilled online and delivered direct to consumers’ homes across now more than 80 countries, and expect to continue to be a disruptive force creating the first omni-channel company in the industry.”

Key Highlights

  • Increases scale with expected pro forma revenue in excess of $500 million, with increased free cash flow and positive net income
  • Enhances the combined company’s global footprint, adds to the core markets of China, Japan and Europe, and expands market access to over 80 markets worldwide
  • Furthers the omni-channel route-to-market strategy with over 80% of products ordered and fulfilled online and over 80% delivered direct to consumers’ homes
  • Strengthens portfolio of healthy brands with major new additions to category platforms of Health and Wellness, Healthy Appearance and Nutritional Performance

ARIIX is one of the fastest-growing companies in the direct selling industry with more than 17% compound annual revenue growth over the past five years. ARIIX was created to be a disruptive force in the e-commerce and direct selling channels. The company was founded nine years ago by former USANA senior executives, led by Dr. Fred Cooper and Mark Wilson. ARIIX has garnered over 200 awards in business, leadership, branding and other areas alongside many Fortune 500 companies to grow to more than $200 million in revenue and $15 million in EBITDA in 2019.

Dr. Fred Cooper, Chief Executive Officer of ARIIX, who will be joining the Board of NewAge as part of the merger, commented, “We have successfully disrupted this industry to create tremendous opportunity for all of our independent representatives over the last nine years. Now we are further poised to springboard to the next level together with NewAge. We are in an excellent position to accelerate organic growth with our direct business model, our expanding market access, and our healthy product portfolio, and are confident as a result of this merger, we will further disrupt the industry and create the first omni-channel company in the sector.”

Similar to ARIIX, NewAge has also been a disruptor, growing from $2 million to over $250 million by the end of 2019 in less than 4 years since inception. NewAge has developed a platform of healthy functional brands sold through its omni-channel route to market across more than 60 countries around the world. The combined entity expects to reach pro forma revenues of over $500 million, with a blended gross margin of approximately 70%, and adjusted EBITDA of more than $30 million for 2020.

Brent Willis concluded, “NewAge was created to make a difference for consumers with healthy alternatives. ARIIX and all of the other new partners embody the same culture to unleash human potential to do well by doing good. Staying true to our purpose and ideals has served us all well, and now we will be able to increase our reach and impact even more to inspire and educate the planet to Live Healthy.”

About NewAge

NewAge is a Colorado-based organic and healthy products company dedicated to inspiring and educating consumers to “Live Healthy.” The company is the only omni-channel company with access to traditional retail, e-commerce, direct-to-consumer, and other channels across more than 60 countries worldwide, with a network of over 250,000 exclusive independent product consultants around the globe. NewAge markets a portfolio of better-for-you products, including the brands Tahitian Noni, TeMana, Nestea, Volvic, Illy Coffee, Evian, Búcha Live Kombucha, ‘Nhanced and others. The company operates the websites newage.com, noninewage.com, and a number of other individual brand websites.

About ARIIX

ARIIX is a Utah-based e-commerce and direct-to-consumer company with a network of more than 200,000 independent representatives. The ARIIX opportunity and brands are available in over 35 countries around the world. Founded in 2011, ARIIX has been one of the most disruptive and fastest-growing companies in the industry and reached No. 35 on the DSN Global 100 in 2020, up from No. 57 in 2019. The company has earned over 200 awards for its business practices and was recognized as one of the fastest-growing private companies in America. The company operates the website ariix.com.

About ZENNOA

Zennoa is an e-commerce and direct selling company founded in 2016 with its largest operations in Japan. “Zennoa” means “freedom, balance and peace,” and sells a portfolio of superfood-based dietary supplements, beverages and fermented foods. Zennoa was created by John Wadsworth and Kim Asay, also two of the original founders of Morinda (Noni by NewAge). Mr. Wadsworth is credited with building Tahitian Noni Juice into the original superfruit and helping to create the superfood category. The company operates the website zennoa.com.

About SHANNEN

Shannen Global is an Indonesian-based e-commerce and direct selling company founded in 2018 that has become one of the leading beauty and skincare companies in Indonesia with revenues exceeding $25 million USD. The company sells facial and body washes, lipsticks, brow shapers and other products, and operates the website shannenglobal.co.

About LIMU

Florida-based LIMU is the category creator and global leader in Fucoidan-rich nutritional products and LIMU seaweed-based products and energy drinks. The company commercializes its portfolio via e-commerce and direct channels and has over 2,000 independent, third-party, unsolicited scientific research studies on its supernutrient, Fucoidan, available for public review on PubMed.gov. The company operates the website thelimucompany.com.

About MAVIE

MaVie is a DNA mapping and wellness company with predictive genomic sequencing and a range of nutritional products customized to an individual’s DNA makeup. The company sequences an individual’s DNA and then develops a customized set of nutritional and other products based on that individual’s genetic makeup. MaVie, which is French for “my life,” operates in Australia, Europe, Hong Kong, Singapore, South Africa, and the United Arab Emirates. They manage the website mavie.com.

You Might Also Like