Aterian, Inc. completed the acquisition of Assets and Business of Squatty Potty, LLC for approximately $24.1 million.
May 05, 2021
Share
Aterian, Inc. (NasdaqCM:ATER) acquired Assets and Business of Squatty Potty, LLC for approximately $24.1 million on May 5, 2021. As consideration for Squatty Potty’s assets, Aterian paid approximately $19 million in cash. Aterian also paid approximately $1.1 million as consideration related to acquired inventory. In addition, and subject to the achievement of contribution margin metrics for the year ended December 31, 2021, Aterian agreed to pay Squatty Potty a maximum earnout of approximately $4 million subject to achievement of certain contribution margin levels of the Business for the 12 month period ending on December 31, 2021, payable in stock or cash at the seller’s discretion. Aterian also agreed to pay Squatty Potty $8 million for transition services, payable in stock or cash at the seller’s discretion. The cash payment reflects an approximate 4.0x multiple on the trailing twelve month operating income of Squatty Potty as of March 31, 2021.
Aterian, Inc. (NasdaqCM:ATER) completed the acquisition of Assets and Business of Squatty Potty, LLC on May 5, 2021. Jones Waldo Holbrook & McDonough PC acted as a legal advisor to Squatty Potty, LLC. Jason Rabbitt-Tomita and Jeff Hartlin of Paul Hastings LLP acted as a legal advisor to Aterian, Inc.
Aterian, Inc. is a technology-enabled consumer products company. The Company builds and acquires e-commerce brands. The Companyâs primary brands include Squatty Potty; hOmeLabs; Mueller; Pursteam; Healing Solutions; and Photo Paper Direct. The Company sells a wide range of products across multiple categories, including home and kitchen appliances, kitchenware, cooling, and air quality appliances such as dehumidifiers, health and beauty products, essential oils and more. These products are sold under the Companyâs owned brands, which were either incubated or acquired. Its customers are mainly individual online consumers who purchase its products primarily on Amazon United States, and to a lesser extent on its owned and operated websites and other marketplaces, such as Walmart. The Company's subsidiaries include Aterian Group, Inc., Xtava LLC, Sunlabz LLC, RIF6 LLC, SweetHomeDealz LLC, Products for Change, LLC, Commerce Planet, LLC, Chromatic Jammer, LLC, Rencare, LLC, among others.
ATERIAN, INC. 
