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Liberator Acquires EdenFantasys.com

Posted On 03 Feb 2011
By : admin

YNOT – WES Consulting Inc., parent company of the Liberator brand of bedroom fantasy equipment, has acquired Web Merchants Inc., parent of adult products e-tailer EdenFantasys.com, in a stock-plus-cash deal.

WES Consulting exchanged 28.4 million shares of its common stock and a cash payment of $100,000 for 100 percent of Web Merchants’ stock. The latter realized 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. As part of the acquisition, Web Merchants will relocate its New Jersey facility to the 140,000-square-foot WES Consulting headquarters and fulfillment center in Atlanta. The company expects to complete integration 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 Wes Consulting President and Chief Executive Officer Louis Friedman. “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 and wholesale customers large and small by utilizing our network of suppliers and vendors.”

Going forward, WES Consulting will continue to drive both the Liberator and EdenFantasys brands through advertising, sales and marketing initiatives.

“The completion of this acquisition signals the beginning of a new, more powerful and dynamic company,” said Web Merchants President and CEO Fred Petrenko. “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.”

U.S.-based WES Consulting Inc. reported fiscal 2010 worldwide sales of $11 million. Prior to the acquisition, the company employed approximately 130 associates in manufacturing, sales, design, marketing and customer service.

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