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Medifast, Inc. announced today that Jason Properties, LLC, a wholly owned subsidiary of Medifast, acquired the assets of Hi-Energy Control Centers, a national company with weight loss centers in over 50 locations. The purchase price was $1.5 million, which includes liabilities, capital expenditures and miscellaneous fees. The Company anticipates that the acquisition will generate $3 million in additional revenues in 2004 and be additive to earnings.
Hi-Energy Centers specialize in weight management programs, and customized patient support in a professionally trained environment. The Company plans to incorporate its existing 25 Medslim clinics with the new centers to provide a clinical and supportive environment for its customers. Additionally, Medifast intends to introduce 10 to 15 more fortified meal replacement supplements into the current line of Hi-Energy products.
“The Hi-Energy clinics will allow Medifast to expand its current customer base,” said Brad MacDonald, Chief Executive Officer of Medifast. “The Company will provide its newly acquired clinics with marketing support through co-op advertising, featuring Dick Vitale. We are very excited about the synergies that this acquisition creates.”
Additionally, the Company’s Seven Crondall LLC real estate subsidiary plans to purchase a sales, executive and corporate development center on the Eastern Shore of Maryland located close to its Ridgley Distribution Center. The Center will support the entire Medifast business platform, its subsidiaries and its business development initiatives providing a professional setting to fuel the growth of the Company.
This release contains forward-looking statements, which may involve known, and unknown risks, uncertainties and other factors that may cause Medifast’s actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Medifast cautions investors not to place undue reliance on forward-looking statements, which speak only to management’s expectation on this date.
SOURCE: Medifast, Inc.
CONTACT: Jeremy Hunt, Investor Relations Specialist, +1-410-504-8196, or
Casey Seward, Public Relations Manager, +1-410-504-8154, both of Medifast; or
Ken Sgro, CEOcast, Inc. for Medifast, +1-212-732-4300
Web site: http://www.medifast.net/
