In a major change of direction, the nutritional supplement developer and marketer e Nutrition has decided to sell all its existing businesses and acquire the sports equipment supplier Torpedo Sports USA.
The deal will take the form of an exchange of stock - e Nutrition will issue 8,000,000 shares of common stock to Torpedo Sports' stockholders to acquire all of Torpedo Sports' outstanding shares. Completion is subject to approval by both companies' shareholders.
Torpedo Sports is a French Canadian company which specialises in the manufacture and distribution of outdoor recreational products for children such as toboggans, baby sleds, snowboards, tricycles, scooters and skateboards.
e Nutrition gave no reason for its decision to withdraw from the direct mail marketing business, saying simply that the deal required it "to divest all of its current business operations prior to the closing of the transaction" . However, the current difficulties being experienced by a number of supplement companies, due to the general downturn in the US market, might be a major factor in the decision.