03.27.17
CCA Industries has obtained a license agreement from Ultimark Products for the global marketing rights of Porcelana, a skin lightening brand.
Ultimark is controlled by Lance Funston, who is also the Chairman of the Board and Chief Executive Officer of CCA Industries, Inc.
Porcelana, founded 46 years ago, was acquired by Ultimark in 2011. In 2016, annual gross sales exceeded $1.9 million. WalMart, RiteAid, and Walgreens currently carry Porcelana in their stores.
The licensing agreement, which will begin on April 1, 2017, calls for a 10% royalty on gross sales and includes a one-year option to purchase the brand for $3.2 million, subject to a fairness opinion.
Lance Funston, Chief Executive Officer, stated, "This license agreement gives CCA a 12-month runway to affect a smooth transition and verify due diligence for valuation purposes. Porcelana has experienced steady growth in recent years and the strength of CCA's distribution network should enhance its performance over time. The brand fits our strategic objective by increasing CCA's skin care portfolio and complements our Sudden Change brand."
CCA Industries, Inc. manufactures and markets health and beauty aids, each under its individual brand name. The products include, principally, "Plus+White" toothpastes and teeth whiteners, "Bikini Zone" medicated topical and shave gels, "Nutra Nail" nail care treatments, "Scar Zone" scar treatment products, "Sudden Change" anti-aging skin care products, and "Solar Sense" sun protection products.
Ultimark is controlled by Lance Funston, who is also the Chairman of the Board and Chief Executive Officer of CCA Industries, Inc.
Porcelana, founded 46 years ago, was acquired by Ultimark in 2011. In 2016, annual gross sales exceeded $1.9 million. WalMart, RiteAid, and Walgreens currently carry Porcelana in their stores.
The licensing agreement, which will begin on April 1, 2017, calls for a 10% royalty on gross sales and includes a one-year option to purchase the brand for $3.2 million, subject to a fairness opinion.
Lance Funston, Chief Executive Officer, stated, "This license agreement gives CCA a 12-month runway to affect a smooth transition and verify due diligence for valuation purposes. Porcelana has experienced steady growth in recent years and the strength of CCA's distribution network should enhance its performance over time. The brand fits our strategic objective by increasing CCA's skin care portfolio and complements our Sudden Change brand."
CCA Industries, Inc. manufactures and markets health and beauty aids, each under its individual brand name. The products include, principally, "Plus+White" toothpastes and teeth whiteners, "Bikini Zone" medicated topical and shave gels, "Nutra Nail" nail care treatments, "Scar Zone" scar treatment products, "Sudden Change" anti-aging skin care products, and "Solar Sense" sun protection products.
