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Matol Botanical International Ltd., the oldest privately held MLM company in the country of Canada, has recently been acquired by Univera, a US based MLM company. After being in business for over 20 years, the company is now a part of Univera.

Founded back in 1984, the Matol story features Karl Jurak, a young scientist who created a health supplement designed to boost the overall health and vitality of those who take it.

Like many other MLM companies in the 80’s the company experienced rapid growth and expansion during the economic recessions of the 80’s. The company was also able to capitalize during the “critical mass” of weight loss products in the 90’s as they also offer a popular weight loss program.

How Did Matol Get Into Trouble?

Usually when a company gets acquired, it is usually because the company made some mistakes in its execution strategy. Otherwise, the company would be doing the acquiring instead of getting acquired.

Len Clements, owner of MarketWave Inc, located at www.marketwaveinc.com has some great insights into the challenges that Matol faced that resulted in the companies challenges to continue to grow. Here is some of his commentary regarding Matol’s troubles in the 90s.

“Corporate conflicts resulted in the departure of Sam Kalenuik and Anthony Jurak, both members of senior management who subsequently launched their own competing companies.”

“This was soon followed by the departure of the Boreyko family from atop their distributor ranks, who went on to found New Vision (Vemma). By the late 90s, when the entire industry's growth was slowing, Matol had also slumped considerably.”

The Details On The Univera and Matol Acquisition

Univera is actually not acquiring the entire company. Matol will still continue to operate as an independent company. The deal is for Univera to acquire the product line as well as the distributor sales force of Matol.

This means that the associates who previously were marketing and building organizations for Matol will now market and build an organization under Univera’s compensation plan.

Don’t be surprised if you see some of the former Matol distributors look for a new company to join. This is very common in mergers of MLM companies and even more so when a MLM company is acquired.

As for Matol itself, the company will still continue to operate as an independent company. However, they will focus their efforts on manufacturing and producing the product.

This is clearly a good deal for Matol as they no longer have to worry about managing a distributor sales force. In addition, they now have the potential to have all of the Univera distributors marketing their products for them.

As for Univera, the keys to making this merger work for them is their ability to retain the Matol sales force as well as their ability to merge the Matol product line into the product line that the company already has available.

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