New Age Beverages Corp (NASDAQ:NBEV)
New Age Beverages Corp (NASDAQ:NBEV) has completed the acquisition of a number of assets belonging to Marley Beverage Company. The assets include Marley’s ready to drink coffee, relaxation drinks, and teas. These products are expected to complement the company’s functional beverage line. The acquisition of the Marley brand builds on the acquisition of Premier Micronutrient Corporation early in the month.
Terms of The Deal
Marley Beverage Company is entitled to 3 million shares of New Age Beverages Corp (NASDAQ:NBEV) as part of the transaction. The company is also entitled to additional earnings based on asset performance. Cost and revenue synergies of more than $5.5 million are expected over the next 12 months. The transaction is also expected to result in operational cost savings of about $3 million.
The acquisition of Marley brands builds on a long-running partnership between the two companies. New Age Beverages Corp (NASDAQ:NBEV) has been marketing and selling some Marley products since late last year. In addition to collaborating on the commercialization front, the two are also working on new product development.
“The acquisition of the assets of the Marley Beverage Company and the capture of cost and revenue synergies provides a significant value-creation and instantly accretive opportunity for shareholders and brings a globally recognized brand with more than 74 million Facebook followers into the New Age brand portfolio,” New Age Beverage in a statement.
Expanded Beverage Line
The acquisition of Marley Beverage Assets further bolsters New Age Beverages Corp (NASDAQ:NBEV) position in the beverage industry. The company will now be able to compete in all of the 5 fastest growing segments in the industry
Premier Micronutrient Corporation’s acquisition early in the month is poised to expand the company’s footprint into the healthy beverages market. In addition to gaining access to 10 major patents, New Age’s Health Sciences division received a major boost with planned launches into the medical and pharmacy channels.
“We are very pleased to have closed the PMC acquisition so quickly so we can get on with capitalizing on an unbelievable array of breakthrough technology for the beverage industry. The timing couldn’t be more right as consumers are increasingly seeking healthier functional alternatives,” said CEO Brent Willis.
New Age Beverages Corp (NASDAQ:NBEV) stock was up by 4.52% in Wednesday’s trading session ending the day at $6.48 a share. The stock is currently closing in on its 52-week high of $86.58 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.