FitLife Brands announces court approval of MusclePharm deal

FitLife Brands announced that the US Bankruptcy Court for the District of Nevada has approved FitLife’s acquisition of substantially all of the assets of MusclePharm Corporation under Section 363 of the US Bankruptcy Code. The all-cash transaction, with no shares being issued by FitLife, is expected to be highly accretive to existing shareholders once all transaction-related costs (anticipated to be approximately $500,000) have been expensed. The purchase price of $18.5 million, which is subject to customary adjustments, will be funded using cash on hand and the proceeds of a new committed $10 million term loan issued by First Citizens Bank with a rate of SOFR+275. The transaction is expected to close as soon as practicable, but no later than October 16, 2023. Through the asset purchase transaction, the Company is acquiring substantially all of the assets and assuming none of the liabilities of MusclePharm. Dayton Judd, FitLife’s Chairman and CEO, commented, “We are very excited to welcome MusclePharm to the FitLife family of brands. We expect MusclePharm to drive continued revenue and earnings growth for our Company. Although we will always opportunistically evaluate potential additional M&A transactions, after closing the MusclePharm transaction we expect to focus primarily on integrating and growing our recently acquired brands and reducing leverage through EBITDA growth and debt reduction.”