The agreement also means that Elevation Labs will continue to manufacture Scott’s personal care product lines while the company transitions its manufacturing to other production partners.
That transition period is expected to run through till mid-2020, while the transaction is expected to close on March 1st, 2020, providing third party consents are received.
Neoteric brand remains
Once the transaction is completed, the agreement also states that Elevation will manufacture certain of its own products, together with certain products in the Scott’s Neoteric brand portfolio.
The agreement also states that Elevation will assume Scott’s remaining facilities and corporate office leases, which will net a net cash payment of $0.5 million for Scott’s, while Elevation has stated it also intends to maintain the current workforce
Scott’s Liquid Gold in a US-based based manufacturing and distribution company with a mainstay business focused on its Liquid Gold wood care and restoration products, but the business also includes a portfolio of personal care products.
Scott’s streamlines personal care
The Colorado facility has traditionally been a stronghold for the manufacturing of brands that include skin and hair care brand Neoteric Cosmetics, Alpha Skin Care, Prell shampoo, Deorex and Zincon medicated shampoos and Neoteric Diabetic, a range of products developed for diabetic-related skin care problems.
“This transaction is a significant step forward in our efforts to operate more efficiently, with a leaner, more agile infrastructure, and with greater operational and financial flexibility,” said Mark Goldstein, CEO and Chairman of Scott's.
“It also allows us to evaluate, select, and benefit from the manufacturing, R&D, and infrastructure expertise of new partners, and focus our strategic efforts towards the growth and marketing our high-quality, high-value brands.”