This is a combination which has existing distribution operations and large retail stores in China for its proprietary and non-proprietary wines, spirits, beers, mixers and soft drinks.
The acquisition by Drinks Americas is subject to completion of due diligence, the negotiation of definitive agreements, and the satisfaction of legal requirements.
Rodman and Renshaw LLC is acting as financial adviser to Drinks Americas, and Newbridge Securities Corp is acting as adviser to Yarraman on the transaction.
J Patrick Kenny, chairman and CEO of Drinks Americas, said: “Consumption of beverages and the size and scale of the distribution and retail market in China is something DKAM wants to be a part of. When we met to discuss and review the strategic opportunity, an immediate vision of the scale and scope of this business opportunity for Drinks began to take shape.
“We see it as an opportunity for the combined companies to grow in the two largest markets in the world, supply profitable and proprietary product, continue to scale our iconic business model and create substantial shareholder value. Assuming a consummation of this acquisition, the entire business enterprise will have more than $20m in current sales, over $40m in net tangible assets, accretive earnings, and a growing business infrastructure capable of efficient international distribution of proprietary products.”
The combined company will operate from offices in New York, London, Sydney, Australia and Shanghai. Michael Kingshott is expected to join Drinks Americas as chairman of the board, and Patrick Kenny will become president and CEO of the combined operations.
Source: Drinks Americas Holdings
© FoodBev Media Ltd 2024