Elevation Labs to acquire Scott’s Liquid Gold manufacturing operation

DENVER — Scott’s Liquid Gold Inc. (OTCMKTS: SLGD) has signed an agreement to sell its Denver manufacturing operation to Elevation Labs Colorado, formerly known as Colorado Quality Products LLC, a beauty and personal-care manufacturer based in Aurora.

Elevation will assume Scott’s remaining facilities and corporate office leases, with net cash proceeds to Scott’s of $500,000, according to a press release announcing the transaction. The companies agreed to enter a manufacturing and supply agreement through mid-2020, during which the facility will continue to produce Scott’s products as it transitions to long-term manufacturing partners.

Elevations said it would retain the Scott’s work force for its own manufacturing operations.

“This transaction is a significant step forward in our efforts to operate more efficiently, with a leaner, more agile infrastructure, and with greater operational and financial flexibility,” Scott’s CEO and chairman Mark Goldstein said in a prepared statement. “It also allows us to evaluate, select, and benefit from the manufacturing, R&D, and infrastructure expertise of new partners, and focus our strategic efforts towards the growth and marketing our high-quality, high-value brands.”

The transaction is expected to close on March 1, 2020. The closing is subject to required third-party consents and entering into a manufacturing and supply agreement under which Elevation will manufacture certain of the company’s and Neoteric Cosmetics’ products. Neoteric is a subsidiary of Scott’s that produces hair- and skin-care products.

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