It appears Xelliss has succumbed to operational challenges. As indicated by a press release on May 12th, Xelliss’ proprietary product formulas, as well as its distributor and client records, have been divested to Zinzino.
Both Xelliss and Zinzino hail from Europe and operate as multi-level marketing (MLM) entities.
In the wake of this strategic acquisition, Zinzino remarks in their statement:
Zinzino is taking over the distributor network of Xelliss, along with the stocks and intellectual property rights of its product arrays.
This venture, which amassed roughly 8 million EUR in the previous year, is poised for robust expansion owing to the synergistic effects within the combined networks.
Considering the venture’s solid gross margins, its profitability is anticipated to ascend markedly through the use of Zinzino’s established technical infrastructure and corporate framework.
The reported turnover for Xelliss in 2023 of 8 million euros raises questions as Zinzino procured the company for a mere 2 million euros.
The arrangement for the acquisition by Zinzino comprises an equilibrium of 50% in cash and 50% in freshly minted Zinzino shares.
Moreover, there are predetermined extra purchase costs that hinge on the business growth brought forth by the newly acquired distributor network in the timeframe spanning 2024–2029.
The conjectured sum of these extra purchase costs is placed at 4.0 million EUR, yet it may surge to as much as 8.0 million EUR in the event of maximum performance and will be compensated exclusively in new Zinzino shares.
Xelliss was a resurrected version of the unsuccessful Natura4Ever MLM, both of which were steered by Eric Masson (pictured right).
Zinzino initially set out as a high-priced coffee pod MLM and pivoted to health supplements in 2018.
A major point of criticism noted in TRUST’s review of Zinzino was the mandatory autoship to be eligible for the complete range of rewards within their payment model.
Prior to its downfall, Xelliss’ online domain was receiving an estimated ~8100 views per month according to SimilarWeb data. A significant portion, over 50%, of traffic to Xelliss’ site was coming from France.
In the same timeframe, April 2024, SimilarWeb’s data outlined a considerably higher traffic of ~329,000 monthly visits for Zinzino’s online presence.
The prime contributors to Zinzino’s web traffic include Hungary (32%), Germany (12%), South Africa (5%), Finland (5%), and Denmark (4%).