Former IFBB Pro bodybuilder Milos Sarcev and Rick Robinette founded Koloseum Nutritional Science (KNS) in 2006. Redux Holdings purchased 100% of remaining shares in KNS. The acquisition by Redux Holdings has been in the works for some time. The Los Angeles Business Journal explains the role of Redux Holdings and how its holding of Naturade resulted in the acquisition of Koloseum:

Thus was born Redux Holdings Inc., which uses its penny stock to acquire assets of underperforming and distressed companies on a non-cash basis. He then leverages debt financing from investment banks and other sources to pay off creditors and rebuild the company, often employing bits and pieces of other acquisitions.

“Usually what you see in the turnaround market is people with a lot of money who would hire someone else to do the turnaround; it’s a pure financial play for them,” said Michelin, most recently a partner at Santa Monica-based restructuring firm Kibel Green Inc.

“What I wanted to do is combine the capital with the operational expertise of people who know how to turn it around, so in the end we’d have the equity.”

Michelin’s current focus is re-establishing Anaheim-based Naturade Inc., a venerable Orange County nutritional supplement maker that fell on hard times, according to regulatory filings, following mismanagement by a new owner earlier in the decade.

In January 2007, Rick Robinette came aboard Naturade (a subsidiary of Redux Holdings) while it was recovering from Chapter 11 bankruptcy.  When Naturade emerged from bankruptcy in November 2007, it quickly raised $1.2 million in funding, gave significant equity stakes to Rick Robinette (who was promoted to Chief Operation Officer (COO)) and Milos Sarcev (who was retained as Chief Science Officer). Redux Holdings also acquired a 30% stake in Koloseum Nutritional Sciences.

The recent purchase completes the acquisition of KNS by Redux Holdings. What does this mean? Trey Meehan, private equity manager and venture capitalist involved with Redux Holdings offered the following analysis:

Well, here is what I think it does for the Company. First, it provides a new product line to market alongside the Naturade brand to a large network that is already in place. Naturade is in stores all across the United States (as well as some international locations) like grocery stores, natural food stores, Sam’s Clubs, vitamin stores and many more. The Naturade brand typically targets the mass audience (moms and pops of the world).

The KNS line targets athletes.

Why does it matter? Well, is there a more efficient way to introduce leading edge, proprietary, nutritional formulas into your “everyday” product line than to take it from a sister product line that already produces supplements for world class athletes.

Congratulations to Milos Sarcev, who in recent years has successfully fought an indictment on steroid charges and deflected controversy from his association with the BALCO scandal.