Cosmetic Group USA Inc., a Sun Valley maker of cosmetics and beauty aids, said it has completed a merger with K7 Capital Corp. of Reseda. As part of the merger, there will be a reorganization and a tax-free exchange of stock.
K7 Capital, an investment firm, acquired all of the issued and outstanding shares of Cosmetic Group in exchange for about 2.1 million newly issued shares of K7 common stock.
After the merger, there will be about 2.54 million shares outstanding.
Under the merger agreement, K7 Capital is changing its name to Cosmetic Group and K7's financial resources will be directed toward the operations of the Cosmetic Group, which had revenue of about $8 million in 1992.
The new directors and officers of K7 are Alfred E. Booth Jr., chairman, chief executive officer and president; Frank X. McGarvey, chief financial officer, secretary and director, and Judy Zegarelli, vice president, sales and director.