EAST RUTHERFORD, N.J. — CCA Industries last week announced that it has sold its weight-loss business, marketed under the Mega-T brand, to a group formed by Casla Partners Capital Fund I.
"The sale of the Mega-T brand represents an important step in strengthening our company's future performance by enabling us to focus resources behind our five core brands: Bikini Zone, Nutra Nail Treatments, Plus White, Scar Zone and Sudden Change," stated Richard Kornhauser, CCA CEO and president. "This transaction also relieves the company of a significant financial liability and allows the company to better support its brand advertising program to deliver new sales and profits. We believe that Mega-T is in the hands of capable and experienced weight-loss category managers, and we wish them the very best in their future endeavors."
"Casla is excited to add the Mega-T brand to its growing portfolio of investments, an acquisition that builds on the firm's demonstrated core competency of acquiring, integrating and growing high equity businesses," said Jared Rochwerg, a partner of Casla. "Mega-T possesses strong brand equity and consumer awareness, while the efficacy of its products contribute to a healthy and active lifestyle. With the firm's proven operational and marketing expertise in the space, Casla is the optimal partner to support Mega-T in realizing its growth potential."
Under the terms of the sale, the purchaser received all inventory, trademarks and other intellectual property rights related to the brand in exchange for assuming pre-closing liabilities for returns, markdowns and co-operative advertising deductions by the retailers up to a cap of $2.25 million.