Health Sciences Group Acquires Kalahari Tea

LOS ANGELES—Health Sciences Group (OTCBB:HESG), provider of innovative health and wellness products, signed an agreement to buy Kalahari® Ltd., a South African-based specialty tea and food company with distribution in thousands of stores in the United States. The acquisition of Kalahari is based on an earn-out provision, under terms of the agreement, which is subject to customary closing conditions as well as a cash investment by Health Sciences Group in the new Kalahari subsidiary to eliminate various liabilities and generate working capital.

“This acquisition provides us with immediate access to over 5,000 national retail outlets and supports our platform strategy to build a strong brand experience that makes a passionate connection with consumers,” said Stuart Gold, chief executive officer (CEO) of Health Sciences Group, adding Kalahari markets and distributes a line of unique products and has a loyal and growing customer base. “We look forward to leveraging the distinctive Kalahari name to launch a multi-channel branding strategy, offering new and innovative products to an audience seeking a balanced ‘healthstyle’.”

“We are thrilled to join forces with Health Sciences Group, which we believe ... will be a progressive company positioned for tremendous growth,” stated Susan F. Abrahams, CEO of Kalahari. “We are excited about the prospect of building Kalahari into a leading specialty brand.”