WORCESTER, Mass.—Vystar Corp., manufacturer of Vytex hypoallergenic natural rubber foam, has acquired the assets of its exclusive U.S. distributor NHS Holdings L.L.C.
With this transaction, Vystar followed through with the letter of intent it signed in January to acquire NHS Holdings.
This is the first part of Vystar's plan to move into direct product offerings made from Vytex, according to an April 23 news release.
The acquisition provides Vystar with roll packing and cutting equipment to support its bedding manufacturing partners, while lowering the cost of Vytex to the manufacturer by eliminating the middleman, Vystar said.
Vystar announced the LOI at the same time it announced that NHS Founder Steven Rotman had been appointed CEO of Vystar. Also at the time, the company announced that its headquarters had been moved from Atlanta to Worcester.
Vystar acquired NHS April 18 for about 27.8 million shares of Vystar restricted common stock worth approximately $975,000, the company said.
The NHS assets included current inventory, which is expected to generate approximately $850,000 in revenue, as well as equipment and intellectual property related to product development, according to Vystar.
Odor-free, biodegradable and sustainably sourced as well as virtually free of allergens or volatile organic compounds, Vytex is used in more than 40,000 products, according to Vystar. It is used in multiple mattress lines, industrial adhesives, apparel padding and threads, shoes, sports equipment and electrical gloves, the company said.