Athena Vale
MusclePharm, the black and green supplement brand known for its quick rise in the early 2010s as The Athlete's Company, has been acquired by FitLife Brands Inc. The acquisition, supported by a $10 million funding from First Citizens Bank, indicates a positive outlook on MusclePharm's value and future performance. FitLife Brands, an umbrella company that owns brands such as NDS Nutrition, Energize, and iSatori, has promised better distribution, availability, and product innovation under its ownership of MusclePharm.
| Characteristics | Values |
|---|---|
| Ownership | FitLife Brands, Inc. |
| Formerly Known As | Tone in Twenty |
| Headquarters | Denver, Colorado |
| Founded | 2006 |
| Industry | Nutritional supplements, sports nutrition, performance lifestyle |
Explore related products
What You'll Learn
FitLife Brands acquires MusclePharm
FitLife Brands, Inc. has recently acquired the well-known sports nutrition brand MusclePharm. The acquisition, which was finalised on October 10, 2023, cost approximately $18.5 million in cash, with $10 million funded by a loan from First Citizens Bank and the remainder from FitLife's cash reserves.
FitLife Brands is a developer and marketer of nutritional supplements and wellness products, with a focus on innovation and proprietary formulas. The company is headquartered in Omaha, Nebraska, and markets over 240 products through various channels, including online, domestic and international GNC franchise locations, and more than 17,000 additional domestic retail outlets.
MusclePharm, founded in 2006 and headquartered in Las Vegas, Nevada, has a strong presence in the US and international markets. Despite financial troubles and a bankruptcy filing, the brand has maintained its appeal, particularly in the sports nutrition space. The company has a diverse product range, including powders, capsules, tablets, and gels, with notable items such as the Combat Sport Bar and a 200lb drum of protein powder.
Dayton Judd, FitLife's Chairman and CEO, expressed enthusiasm about the acquisition, anticipating that MusclePharm will drive revenue and earnings growth for the company. FitLife intends to enhance MusclePharm's profitability by focusing on online sales and expanding wholesale distribution, both domestically and internationally.
The acquisition by FitLife Brands brings new opportunities for MusclePharm to improve distribution, product accessibility, and innovation. MusclePharm plans to reintroduce legacy items and launch new products, leveraging FitLife's resources and expertise. This change in ownership marks a potential turning point for MusclePharm, signalling a shift in direction and the possibility of exciting developments for fans and consumers.
Treating Sternocleidomastoid Muscle: Techniques for Relief and Recovery
You may want to see also
Explore related products
![The Owners [Blu-ray]](https://m.media-amazon.com/images/I/81k6SApLY3L._AC_UL320_.jpg)
MusclePharm sued for protein levels
In 2015, MusclePharm was sued by Hi-Tech Pharmaceuticals, a rival sports nutrition company, over allegations of racketeering and protein spiking. Hi-Tech Pharmaceuticals alleged that MusclePharm had artificially inflated the protein levels in its Arnold Schwarzenegger Series Iron Mass product through a process known as "protein spiking". This process involves adding non-protein ingredients, such as the amino acid glycine and the non-amino acid compound creatine monohydrate, to increase the nitrogen content and make it seem like there is more protein in the product than there actually is.
According to the lawsuit, MusclePharm's Iron Mass product only contained 19.53 grams of protein per serving, despite claiming to have 40 grams. This misrepresentation of protein content violated federal competition and state consumer protection laws, as well as the Racketeer Influenced and Corrupt Organizations (RICO) Act. The lawsuit also claimed that MusclePharm used the internet and interstate carriers to disseminate false product claims and ship the product to consumers across the United States.
In response to the allegations, MusclePharm argued that the claims were preempted by U.S. Food and Drug Administration (FDA) regulations on protein content and measurement in supplements under the Food, Drug, and Cosmetic Act. Initially, in 2016, U.S. District Judge Haywood S. Gilliam Jr. agreed with MusclePharm and dismissed the claims. However, the case was later revived by the Ninth Circuit panel, which found that while the FDA regulations preempted claims about protein content, they did not preempt claims regarding the source of the protein in supplements.
This lawsuit was filed days after Arnold Schwarzenegger terminated his relationship with MusclePharm. Schwarzenegger ended his association with the company due to years of his name being allegedly dragged through the mud. In addition to this lawsuit, MusclePharm has faced other legal troubles, including charges by the U.S. Securities and Exchange Commission (SEC) for accounting and disclosure violations, such as failing to report or misrepresenting benefits paid to executives and issuing stock without a registration statement.
Rib Attachments: Muscles That Move Your Ribs
You may want to see also
Explore related products
MusclePharm's SEC charges
The U.S. Securities and Exchange Commission (SEC) charged MusclePharm with a multitude of accounting and disclosure violations. The SEC's investigation found that the company failed to report or grossly misrepresented approximately $500,000 in benefits paid to three current or former executives and chairmen.
The SEC also discovered that MusclePharm issued stock without a registration statement when it entered into transactions with third parties that agreed to pay cash to MusclePharm vendors in exchange for company shares. This was done to address MusclePharm's outstanding invoices of approximately $1.1 million.
In addition to these financial irregularities, the SEC charged former MusclePharm executives with accounting and disclosure fraud. The SEC's complaint alleged that former Executive Vice President of Sales and Operations, Brian H. Casutto, with the assistance of former Vice President of Sales, Matthew J. Zucco, engaged in a fraudulent scheme to prematurely recognize revenue for orders that remained in MusclePharm's control. The complaint also alleged that former contract Chief Financial Officer, Kevin R. Harris, should have known that MusclePharm prematurely recognized certain revenues and overstated other revenues by misclassifying customer credits.
As a result of the SEC's charges, MusclePharm, its CEO Brad Pyatt, and two former chief financial officers, L. Gary Davis and Lawrence Meer, agreed to settle the case by paying fines without admitting or denying any of the allegations. MusclePharm paid a $700,000 penalty and agreed to hire an independent monitor for one year. Pyatt paid a $150,000 penalty, while Prosser and Davis each paid $30,000. Meer and Davis were suspended from practicing accounting for SEC-related companies for three and two years, respectively.
The Penis: Muscle or Not?
You may want to see also
Explore related products
MusclePharm acquires BioZone Laboratories
MusclePharm, an American nutritional supplement company, acquired BioZone Laboratories in 2013. The acquisition included BioZone's manufacturing facility in Richmond, California, as well as its QuSomes, HyperSorb, and EquaSomes technologies. BioZone's technologies enhance the absorption of topical drugs, which MusclePharm aimed to utilise in its nutritional supplements to enhance absorption.
The acquisition also included various product lines, such as the Arnold Schwarzenegger series, Combat ProGels, and MusclePharm Carnitine. The deal was part of MusclePharm's restructuring plan, aiming to improve its financial position, enable strategic growth, and address debt obligations.
BioZone Laboratories, a California-based company, is a manufacturer and developer of over-the-counter drugs, supplements, and nutritional supplements. Its patented QuSomes technology improves the absorption of topical medications and other drugs. By acquiring BioZone's assets, MusclePharm expected to enhance its R&D and manufacturing capabilities, bringing innovation and sophistication to the sports nutrition market.
MusclePharm, founded in 2006 and headquartered in Las Vegas, Nevada, develops, manufactures, markets, and distributes branded nutritional supplements. It offers a range of powders, capsules, tablets, and gels, with a focus on performance and lifestyle. The company has a global presence, with the US market accounting for the majority of its revenue.
Maintain Muscle Mass: Strategies for Long-Term Success
You may want to see also
Explore related products
$12.98 $14.97
![The Owners [DVD] [2020]](https://m.media-amazon.com/images/I/81VVNuUf-vL._AC_UL320_.jpg)
MusclePharm's history and headquarters
MusclePharm Corporation is an American nutritional supplement company founded in 2006 and incorporated on 4 August 2006. It is headquartered in Las Vegas, Nevada, and was previously headquartered in Denver, Colorado.
The company develops, manufactures, markets, and distributes branded nutritional supplements. It offers various types of powders, capsules, tablets, and gels. MusclePharm has a significant business presence in the US and the international market, with the US accounting for the majority of its revenue.
In 2013, MusclePharm acquired BioZone Laboratories, including its facility in Richmond, California. This acquisition included BioZone's QuSomes, HyperSorb, and EquaSomes technologies, as well as various product lines, including the Arnold Schwarzenegger series.
MusclePharm has had a notable presence in the sports nutrition market for over ten years. Formerly known as "Tone in Twenty," the company was acquired by FitLife Brands, Inc. in October 2023. This acquisition was supported by a $10 million funding from First Citizens Bank, indicating confidence in MusclePharm's future performance and strategic importance.
The merger with FitLife Brands, an umbrella company that owns brands such as NDS Nutrition, Energize, Metis Nutrition, PMD, and iSatori, is expected to bring positive changes. MusclePharm has promised better distribution, easier access, and the introduction of new products, including the return of legacy supplements.
Esophagus: A Muscular Tube's Important Role in Digestion
You may want to see also
Frequently asked questions
FitLife Brands, an umbrella company that also owns NDS Nutrition, Energize, Metis Nutrition, PMD, and iSatori.
MusclePharm Corporation is an American nutritional supplement company founded in 2006 in Denver, Colorado.
MusclePharm develops, manufactures, markets, and distributes branded nutritional supplements.
MusclePharm is known for its quick rise in the early 2010s as "The Athlete's Company".
FitLife Brands plans to bring back legacy supplements, introduce innovations, and provide better distribution and availability.
