LiveDeal Announces Closing of $30m AcquisitionJune 15, 2015
Acquisition Adds Approximately $8 m in EBITDA and over $30m in assets to LiveDeal’s Consolidated Financials
LAS VEGAS, July 15, 2015 – Live Ventures Inc., a wholly-owned subsidiary of Live Deal Inc., a diversified holding company (NASDAQ:LIVE)(“Live Deal” or the “Company”), today announced the closing of its first acquisition based on its strategy to acquire diversified and profitable companies: Georgia-based Marquis Industries, Inc. (“Marquis”), a specialty, high-performance carpet yarn manufacturer, hard-surfaces re-seller, and top 10 high-end residential carpet manufacturer in the United States. Management believes the acquisition will make LiveDeal immediately profitable.
The acquisition was financed using $6m in bridge financing from Isaac Capital Fund I, LLC, a company controlled by our President and CEO Jon Isaac, and $20m from Bank of America Merrill Lynch.
Bank of America Business Capital President Jeff McLane, said “Our relationship with Live Ventures’ subsidiary Marquis is a great example of the capability of Bank of America Merrill Lynch to deliver seamless and efficient credit solutions to our clients. We look forward to helping them during this period of growth and in the years to come.”
In 2014, Marquis’s sales reached $60M (unaudited), and it is experiencing a record year in 2015 with nearly an $8m in TTM (trailing 12 months) EBIDTA, based on third-party advisory accounting estimates. The acquisition adds about $35m in assets to LiveDeal’s balance sheet, including the latest technology machinery and equipment, and seven parcels of developed real property, totaling nearly 500,000 square feet of state-of-the-art manufacturing and industrial facilities.
“Acquiring Marquis, by our estimates, will immediately make LiveDeal a profitable company, and significantly contribute to stockholder value,” said LiveDeal CEO, Jon Isaac. “With this acquisition, we expect LiveDeal to generate close to $100m in revenue on an annual, consolidated basis and add around $8m in EBITDA to our bottom line. We look forward to working with Marquis’ management, which has maintained the company’s profitability for more than 20 years.”
About LiveDeal, Inc.
LiveDeal Inc. provides marketing solutions that boost customer awareness and merchant visibility on the Internet. LiveDeal operates a deal engine, which is a service that connects merchants and consumers via an innovative platform that uses geo-location, enabling businesses to communicate real-time and instant offers to nearby consumers. In November 2012, LiveDeal commenced the sale of marketing tools that help local businesses manage their online presence under the Company’s Velocity Local™ brand. LiveDeal continues to actively develop, revise, and evaluate these products and services and its marketing strategies and procedures. For more information, visit www.livedeal.com.
About Marquis Industries, Inc.
Marquis Industries, Inc. is a leading manufacturer of innovative yarn products and high-end carpets, as well as a reseller of hard surface flooring products. Marquis focuses on the residential, niche commercial, and hospitality end-markets. Since their founding, the company has built a strong reputation for outstanding value, styling, and customer service. Marquis’ state-of-the-art operations enable high-quality products, unique customization, and exceptionally short lead-times. The Company’s innovation has yielded products and technologies that differentiate its brands in the flooring marketplace. Marquis enjoys a highly diverse revenue base with sales to thousands of customers across several different end-markets, geographies, and product lines. Marquis, through its A-O Division, is the only manufacturer in the world that can produce certain types of yarn prized by the artificial turf industry. Further, the company’s yarn processing facilities have special capabilities that are valued by other manufacturers and allow it to contract process for these mills.
Bank of America Business Capital
Bank of America Business Capital is one of the world’s largest asset-based lenders, with more than 10 primary offices serving the United States, Canada and Europe. It provides corporate borrowers with senior secured loans of $10 million or more, cash management, interest rate and foreign exchange risk management, and a broad array of capital markets products.
Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. ©2015 Bank of America Corporation.
Visit www.bankofamerica.com/businesscapitalnews for more information.
Forward-Looking and Cautionary Statements
This press release may contain “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In accordance with the safe harbor provisions of this Act, statements contained herein that look forward in time that include everything other than historical information, involve risks and uncertainties that may affect the Company’s actual results. There can be no assurance that such statements will prove to be accurate and there are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, plans and objectives of management for future operations or products, the market acceptance or future success of our products, and our future financial performance. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014, most recent Quarterly Report on Form 10-Q, and other filings with the U S. Securities and Exchange Commission (available at http://www.sec.gov). The Company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.
Tim Matula, investor relations
Source: LiveDeal Inc.