Reliant, Thane to Merge
Thane will exchange its 1.1 million existing shares for newly issued Reliant stocks representing 90 percent of Reliant's outstanding shares. Reliant, Tampa, FL, will reincorporate in Delaware and change its name to Thane International.
The dollar value of the merger was not disclosed. The combined companies are expected to generate about $400 million in annual revenue and $36 million in earnings.
Reliant's management will stay on, operating Thane's U.S. DRTV marketing division. Thane's management will operate other segments, including international DRTV, Internet sales, retail sales, shopping channels and catalog and print marketing.
Bill Hay, CEO of La Quinta, CA-based Thane, will become CEO of the merged company. Hay said the merger would create a firm with a diversified product line, including fitness, health and beauty, housewares and electronics, and varied distribution channels such as DRTV, telemarketing, retail, catalogs and the Internet in more than 80 countries.
HIG Capital, Miami, majority owner of Thane, will have a majority interest in the merged company.