BioNeutral to buy fibers, textiles maker Orient Arts
BioNeutral Group Inc announced the signing of a letter of intent (“LOI”) to acquire 100% of Orient Arts Inc., a manufacturer of fibers, textiles and finished goods. Orient Arts Inc. and its affiliate companies have annual sales of over $10 million.
The acquisition will take place through an issuance of common shares of BioNeutral Group Inc through its wholly owned subsidiary, Advanced Bio-Fiber Treatments Corp., a life science chemical technology company specializing in unique formulations which can be applied to natural and manmade fibers, eliminating unwanted chemicals and microorganisms (including the stains they leave behind); thereby lengthening the life of the fabric/color and increasing market appeal.
Orient Arts and its affiliate companies manufacture, design and produce finished goods in Asia. The company has established channels of distribution in the U.S., including traditional department stores and direct sales to large commercial clients, producing nearly 1 million finished garments a year including shirts, pants and healthcare uniforms. Annual sales are approximately $10 million and its affiliate companies have licensing agreements with several celebrities.
Stephen J. Browand, President and CEO of BioNeutral Group, Inc. said, "Mahesh Lala is a seasoned executive in the field and we are fortunate that Mahesh has agreed to stay on board and continue to run Orient Arts. The company is interested in applying BioNeutral's proprietary chemical formulations to the fabric and finished goods presently offered as well as to expand the business of the company to markets in the broader healthcare field where certain product characteristics are important. The objective is to develop added value treatments for fabric, fibers and finished goods for consumers, industry and those used by healthcare personnel in hospitals, nursing homes, doctor/dental/veterinary offices, diabetics, home health and wound care, while controlling the means of production."
James T. Crane, CPA, CFO of BioNeutral Group said "We will make the acquisition through an issuance of shares in BioNeutral Group Inc. Our Company will consolidate financial accounts after the acquisition closes in approximately 60 days, subject to our final due diligence. We intend on being active in this acquisition space."
Mahesh Lala, President of Orient Arts Inc. stated, "I have long wanted to sell differentiated fabric and garments to the broader healthcare industry and to have an ongoing means for generating revenue after the initial sale takes place. Being an existing shareholder of BioNeutral Group, I am excited about the potential opportunities that may arise from joining with BioNeutral and incorporating their proprietary chemical formulations which will certainly set us apart from the rest of the textile and finished goods manufacturing industry.”
BioNeutral Group Inc