Smart for Life, Inc. (SMFL) is experiencing a significant surge in its share price on Wednesday, driven by the company’s announcement of ongoing negotiations for the acquisition of four health and wellness businesses. This strategic move is part of Smart for Life’s post-restructuring initiatives, with the company aiming to reach a revenue target of $100 million through a combination of organic growth and strategic mergers.
According to a Benzinga Exclusive report, Smart for Life is actively seeking profitable companies within the nutraceutical industry that generate annual revenue between $5 million and $25 million. The specific acquisition targets include:
*
Purely Optimal Nutrition:
Smart for Life and Purely Optimal management are currently collaborating on restructuring sales initiatives to enhance Purely Optimal’s profitability before finalizing the acquisition.*
Liquid Manufacturer:
This contract manufacturer boasts sales of approximately $12 million and achieved profitability in the previous fiscal year.*
Established Supplement Brand:
This brand boasts historical sales of roughly $10 million annually, demonstrating profitability in the nutraceutical product segment.*
Wholesale Manufacturer and Distributor:
Generating an estimated $8 million in revenue, this business showcases profitability within retail channels.Darren Minton, CEO of Smart for Life, expressed enthusiasm about the potential of these acquisitions, stating, “We believe this pipeline represents a significant addition to our M&A initiatives. While there is no assurance that any particular acquisition will be completed, we believe the growing acquisition pipeline creates an enormous prospective opportunity for the Company. We look forward to keeping everyone apprised of our developments as we continue to implement our strategy and drive toward our publicly stated goal of $100 million in revenue through both organic growth and M&A initiatives.”
The news of these potential acquisitions has sparked significant investor interest, leading to heavy trading volume for SMFL shares on Wednesday. Data from Benzinga Pro reveals that over 53 million shares have already been traded during the session, exceeding the stock’s float of only 110,629 shares.
For investors interested in acquiring SMFL stock, various avenues are available. Beyond purchasing shares through a brokerage platform, investors can gain exposure to SMFL by investing in exchange-traded funds (ETFs) that hold the stock. Alternatively, investors can allocate a portion of their 401(k) to strategies that target shares in mutual funds or other instruments. Smart for Life falls under the Consumer Staples sector, and ETFs often hold shares in numerous liquid and large companies within this sector, enabling investors to gain exposure to the trends within this segment.
According to Benzinga Pro, Smart for Life shares have surged by 97.9% to $1.92 at the time of publication on Wednesday, underscoring the market’s positive response to the company’s acquisition strategy and growth ambitions.
