WORCESTER, Mass.—Vystar Corp., manufacturer of Vytex deproteinized natural rubber latex, has signed an agreement to purchase Murida Furniture Co., dba Rotmans Furniture and Carpet.
Vystar's acquisition of Rotmans will add approximately $30 million to Vystar's top-line revenue and enable the company to capitalize on Rotmans' infrastructure in accounting, retail sales, customer service, warehousing and delivery, said Steve Rotman, CEO of both Vystar and Rotmans.
Vystar has acquired a controlling interest in Rotmans for $2.03 million, comprised of 25 percent cash over four to eight years and 75 percent in notes convertible into shares, according to a Vystar press release.
With the proposed acquisition, Vystar and Rotmans plan to collaborate on a number of initiatives relating to environmentally friendly product development and distribution that will utilize their combined access to capital markets, Vystar said.
With Vystar's recently announced acquisition of Fluid Energy Solutions (FES), Vystar anticipates accessing capital to complete research and development to adapt FES technology to Vystar's RxAir air purification systems, Vystar said.
This will allow Vystar to enhance the effectiveness and decrease the size and cost of RxAir systems, it said.
Rotmans is the largest furniture and flooring store in New England, and is one of the largest independent furniture retailers in the U.S., according to Vystar. Its 200,000-sq.-ft. store in Worcester employs about 150 people, and the company's 2018 gross revenue was more than $30 million.