Avidus Management Group provides market guidance relating to acquisition strategy

Published on October 31, 2013 at 10:31 AM · No Comments

Avidus Management Group Inc. ("Avidus" or the "Company") (TSX-V: AVD, OTC: ASNHF), today provided market guidance relating to its acquisition strategy.

Over the last several months and with the support of the Company's Mike Sheffield agreement and Director Terrel Transtrum, key industry insiders, the Company has established a strong pipeline of acquisition candidates and is pleased to announce that it has made an initial non-binding agreement to acquire the assets of one company and is currently in discussions with several others.

Avidus CEO, Dan Lundell said, "Our team of industry veterans has established a comprehensive approach to identifying and qualifying companies for consolidation.  The pool of candidate companies for our transaction pipeline within network marketing is large and fragmented, with over 500 market entrants per year."

Network marketing is an enormous industry that provides companies an effective channel to market and distribute their products to consumers via direct selling.  In the US alone, network marketing is a $31.6 billion sales industry with 15.9 million distributors.  Publicly traded network marketing companies include Herbalife (HLF), Avon (AVP) Nu Skin (NUS), Usana (USNA) and Blyth (BTH), while Amway, Mary Kay, Melaleuca and MonaVie are among the more well known privately held network marketing companies.  Prominent investors of network marketing companies include Warren Buffett, Carl Icahn, George Soros, Paul Zane Pilzer and Robert Allen.

Recently, the acquisitions of networking companies have accelerated.  CVSL, Inc. (OTCBB: CVSL), a Dallas based company, has recently purchased three networking companies, but more importantly, has tendered an offer to purchase Blythe, Inc. (NYSE: BTH) at a 35% premium to market.  Blythe is another consolidator of network marketing companies.

Avidus CEO, Daniel Lundell, pointed out, "The trend is obvious-- the network marketing sector is replete with opportunities for accretive transactions.  Our strategy goes beyond simple acquisitions however; we target companies with a very particular set of characteristics that when combined with our expertise, can produce significant growth and profit.  The brand-management / portfolio approach to network marketing can bring long term value growth for shareholders."

Source:

Avidus Management Group Inc.

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