Omega Brands Corp., Tampa, announced that it has entered into a definitive agreement with Mycell Technologies LLC, Paramus, N.J., to purchase certain specified assets related to its Omega Infusion omega-3-infused beverages and nutritional shots. Omega Brands also entered into a 20-year supply agreement with Oceans Omega LLC, a wholly-owned subsidiary of Mycell Technologies, for its proprietary omega emulsion.
Terms of the asset purchase agreement include the purchase of the proprietary formulas, trade names, trade secrets, trademarks, marketing materials and Internet domains related to the Omega Infusion business from Mycell Technologies. In addition, Omega Brands will pay Mycell Technologies a 15 percent royalty on net proceeds received by Omega Brands from any future sale, license or other disposition of the Omega Infusion assets to a third party.
The supply agreement provides, in part, for the sale of the proprietary omega emulsion to Omega Brands at a competitive price. Omega Brands also will pay a royalty to Oceans Omega for each 12-pack of Omega Infusion Enhanced Water or Omega Infusion Shots sold by Omega and that incorporate Ocean Omega's omega-3 emulsion. To protect Omega Brands' competitive position during the early stages of the agreement, Oceans Omega will pay to Omega Brands a royalty on omega-3 emulsion sales in North America made to select customers.
“We are excited about assuming ownership of the Omega Infusion portfolio of flavored drinks and shots,” said Jim Dickson, chief executive officer of Omega Brands, in a statement. “Omega Brands Corp. anticipates repositioning these Omega Infusion brands later this year and will offer the products to major retailers for sale to their customers."
Dr. Volker Berl, chief executive officer of Mycell Technologies, added in a statement: "We are looking forward to completing this transaction with Omega Brands Inc. The brand Omega Infusion, which we have proudly created, will be in very capable hands to ensure its further growth. The management team at Omega Brands Inc. has extensive experience within the beverage industry, which will accelerate the sales and distribution of the Omega Infusion branded products. Mycell Technologies can now concentrate on its core business as a specialty ingredient company to expand the use of its innovative and proprietary omega-3 ingredient solutions to the food and beverage industries."
Omega Brands’ goal is to develop and distribute specialty beverages such as Omega Infusion products across North America and selected international markets, including strategic retailers in the following channels: convenience and gas, grocery, discount grocery, mass merchandise, club, and drug store.