Takeover talk generates a lot of buzz in the market as investment bankers and investors get excited for fast money. Why investors and investment bankers? Well, investors get an immediate return on their investment and investment bankers get large transaction fees. The M&A market has seen an increase in interest this week after Facebook's (FB) $1 billion acquisition of Instagram, a fun, popular photo-sharing app for mobile devices. If that wasn't enough, Facebook's initial public offering is expected to take place next month so it's a hot time, to say the least, in the M&A markets.
Digging deeper into the press release, Mark Zuckerberg said that Facebook and Instagram "complement each other" and that is one reason why acquisitions are done. That same reason is why Sunpeaks Ventures (SNPK.OB) could be attractive for potential acquirers. For some background, Sunpeaks Ventures and its wholly owned subsidiary Healthcare Distribution Specialists ("HDS") is a nationally focused, value-added distributor of specialty drugs and over-the-counter ("OTC") branded multivitamins to the healthcare provider market. HDS also owns and markets Clotamin, a specialized over-the-counter multivitamin product designed exclusively for use by patients also on Warfarin.
Although relatively new to the market, the stock is generating a lot of excitement and interest, more than doubling over the past few weeks. Investors seem to be attracted to the company's growth strategy and the speed with which it has established new distribution partnerships for its top product, Clotamin. Some of its new partners include Walgreens (WAG) and Winn-Dixie (WINN). Clotamin is obviously getting recognition by some of the largest retailers in the U.S., and with that, comes interest from larger players looking to bolt on acquisitions to expand their product line and those looking for growth.
Sunpeaks' potential acquirers are not just getting domestic distribution partnerships. This week the company announced two international expansions. On Monday, the company said that it signed a Letter of Intent with PharmaLife for placement of Clotamin with leading pharmacies in the Russian Federation.
The Letter of Intent outlines the terms and conditions of a proposed transaction that could see Clotamin distributed by several pharmacy and retail chains in the Russian Federation, including product placement with leading wholesalers Imperia-Pharma, the Dr. Stoletov pharmacy chain (414 locations), and other small retail pharmacies associated with Imperia-Pharma. PharmaLife is also expected to secure timely product registration within the Russian Federation for Clotamin distribution and conduct local market research to support a successful product launch.
This expansion may set the table for the company expanding into other international markets. Mackie A Barch, CEO of SNPK, said that "we look forward to working closely with PharmaLife and our new possible distributors to build market awareness and sales of Clotamin across Russia. If successful, the company intends to utilize this expansion strategy to penetrate other international markets that share similar potential."
On Wednesday, Sunpeaks announced that it entered into an agreement with DS Healthcare Limited to assist in introducing Clotamin to the UK/EU market. Under terms of the agreement, DS Healthcare will evaluate the Clotamin formulation and claims against the European Union Food Supplement Directive, the Nutritional Health Claims Directive, and Food Labeling Regulations to determine any specific actions and timeline required to introduce Clotamin to the U.K./EU market.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.