April 23, 2018

Rotman-led firm acquires distributor for $971K

Courtesy
Steven Rotman.

The Worcester latex foam product manufacturer led by furniture executive Steve Rotman has acquired the assets of its exclusive distributor, also based in Worcester, for $971,000.

Monday's announcement of the acquisition of NHS Holdings comes after the companies announced a letter of intent in January.

Rotman, CEO of Rotmans Furniture and Carpet, owns NHS Holdings, which in 2015 became the exclusive U.S. distributor of Vystar's natural rubber latex foam, Vytex.

In December, Vystar moved to Worcester from Atlanta after it was announced that Rotman would become the company's new CEO.

The acquisition provides Vystar with roll packing and cutting equipment to support the company's bedding manufacturing partners while lowering distribution costs by creating an in-house distribution operation.

"Now unified under the Vytex brand, we anticipate developing additional product offerings and solidifying partnerships with multiple major manufacturing partners throughout the home furnishings industry," Rotman said. "We anticipate our new offerings will include cushions and padding for use in seating and other products which we believe will achieve higher margins."

The transaction comes at a 70-percent discount from NHS' valuation of $4.6 million, which was approved by NHS members, who are also major Vystar shareholders, business partners and insiders.

Aside from Rotman, those include:

  • Lam Ngoc Minh, CEO of Lien 'A, a latex foam manufacturer, and a major producer of Vytex foam. Lien 'A has worked closely with NHS to develop traditional and innovative new foam products;
  • Keith Osborn, member of Vystar Board of Directors, orthopedic spine surgeon and Vystar's largest shareholder;
  • Bryan Stone, member of Vystar Board of Directors, nephrologist and CEO of Fluid Energy Conversion;
  • Joseph Allegra, director at Oncology Molecular Imaging LLC, a director & owner at Cyber Logistics, Inc., a founder at Diamond Investments II LLC and an owner at Lincoln Lee Investments LLC.
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