SUNSET CAPITAL ASSETS, INC. Sunset Brands Inc. (OTCPK:SSBN) executed a letter of intent to acquire Motors Acceptance Corporation (MotorMax) from a family on March 27, 2014. MotorMax will operate under Sunset Capital Assets umbrella of companies. Sunset Brands Inc. executed an amended letter of intent to acquire Motors Acceptance Corporation (MotorMax) from a family for $30 million on October 30, 2014.
Out of the purchase price of $30 million, $25 million (subject to net capital adjustments at closing) is payable in cash and $5 million is payable in stock. The cash consideration payable in connection with the acquisition will be used to repay certain obligations of MotorMax other than certain credit facilities which will be assumed by Sunset Brands. MotorMax generated $27.3 million of revenues.
The Sunset's intention to purchase Motors Acceptance Corporation will be assigned to Mint on September 24, 2014. The deal is subject to negotiating a mutually acceptable Securities Purchase Agreement, due diligence, raising adequate funding to complete the transaction and the approval of the acquisition by Sunset Brands's senior lender. The acquisition should be completed in Q4 of 2014 and will be a wholly owned affiliate of Mint.
As of November 4, 2014, The Motors Acceptance Corporation purchase will be funded via The Mint Leasing, Inc. When completed Motors Acceptance Corporation will initially add approximately $80 million in performing automotive receivables and $30 million per annum in revenue to The Mint Leasing, Inc.
