Synergy CHC Corp.

Synergy CHC Corp. is a provider of consumer health care, beauty, and lifestyle products. The company's brand portfolio includes two main brands: FOCUSfactor and Flat Tummy. FOCUSfactor is a brain health supplement that has been shown to improve memory, concentration, and focus in an independently performed clinical study. Flat Tummy is a lifestyle and wellness brand offering nutritional products for women's nutrition and weight management goals. These brands are collectively referred to as nutraceuticals. Synergy's products are sold through leading club, mass drug, and other retailers, including Costco, Amazon.com, Walmart, Walgreens, BJ's, and The Vitamin Shoppe. The company has also expanded its sales into Canada and Mexico. Synergy built its brand portfolio through strategic acquisitions, acquiring the FOCUSfactor brand in January 2015 for $6.0 million in cash consideration, including earnout. In November 2015, the company acquired the Flat Tummy brand for AUD 10.0 million (approximately $7.0 million) using a mix of cash and stock. Following these acquisitions in 2015, Synergy's capital structure has been highly leveraged, with a focus on debt repayment, limiting resources for business growth. The FOCUSfactor brand has expanded from 3 SKUs at acquisition to over 34 SKUs, and the Flat Tummy brand has grown from 1 SKU to 13 SKUs. Synergy operates an asset-light business model, partnering with third-party manufacturers to produce its brand offerings.