In a press release, WES Consulting, Inc. announced it has acquired 100 percent of Web Merchants, Inc. stock in exchange for 28.4 million shares of Wes Consulting common stock and a cash payment of $100,000. Web Merchants, Inc. had net revenues of $7.6 million in 2009 and net revenues of $6.2 million for the nine months ended Sept. 30, 2010.
The acquisition will create a social network of communities focusing on sexual health and wellness, the company said.
Liberator Chief Marketing Officer Michael Kane told XBIZ that both entities would continue to operate as they have in the past but will bring together the unique capabilities of both operations in order to better serve both consumer and wholesale customers in a variety of adult and mainstream channels.
As part of the acquisition, Web Merchants, Inc. will relocate their New Jersey facility to Liberator’s 140,000 square foot headquarters and fulfillment center in Atlanta. Full integration of the companies is expected to be completed by April.
“With this acquisition, our company will advance its consumer e-commerce capabilities to better serve our customers’ growing demand for sexual wellbeing products,” said Louis Friedman, president and CEO of WES Consulting, Inc. “By combining the marketing experience of WES Consulting, Inc. with the retail web expertise of Web Merchants, Inc., we are uniquely positioned to serve both e-commerce customers, as well as, wholesale customers large and small by utilizing our network of suppliers and vendors.”
Going forward, WES Consulting, Inc. will continue to drive both the Liberator and EdenFantasys brands through continued advertising, sales and marketing initiatives, the company said.
“The completion of this acquisition signals the beginning of a new, more powerful and dynamic company,” said Fred Petrenko, president and CEO of Web Merchants, Inc. “The industry is changing rapidly and the excitement and rejuvenation is being felt not only within our new company, but among our customers and business partners. With the combined resources of WES Consulting, Inc. and Web Merchants, Inc., we are creating a strong team of knowledgeable and passionate employees that will be dedicated to delivering pioneering products and interactive experiences that will continue to capitalize on the sexual wellness category.”
