DALLAS and NEWARK, Ohio, Jan. 11, 2013 /PRNewswire/ -- Ohio-based The Longaberger Company and Computer Vision Systems Laboratories Corp. ( stock symbol: CVSL) have signed a letter of intent (LOI) for CVSL to acquire a controlling voting interest in Longaberger. According to the LOI, Longaberger would become part of CVSL's strategy of growing in the direct selling channel. Longaberger's revenues last year exceeded $100 million.
"This is great news for the Longaberger Company as we celebrate its 40 th anniversary in 2013," said Tami Longaberger, President and CEO of The Longaberger Company. "From the day my father founded our company, it was a dream of his that someday we could give our sales force and employees and customers the opportunity to become owners in our company. That wasn't possible for us as a private company, but now that dream can come true," said Ms. Longaberger.
"This opportunity also will help us continue The Longaberger Company's momentum by giving us the prospect of access to more capital for growth, additional resources and access to new markets," she noted. "We've always been leaders in direct selling. I'm thrilled that now, yet again, our company is leading the way where others will follow. I know that Dad would be beaming with pride."
As previously announced, Ms. Longaberger joined CVSL's board of directors on December 3. Under the terms of the LOI announced today, Ms. Longaberger has begun the process to convert her shares of The Longaberger Company stock into shares of CVSL stock, pursuant to a definitive agreement yet to be negotiated. This conversion would give CVSL a controlling voting interest in Longaberger and is subject to lender, shareholder, and regulatory approvals.