New Age Beverage Corp. (NASDAQ: NBEV) shares made a handy gain on Monday after the company announced that it would be acquiring Morinda Holdings, a healthy lifestyles and beverage company with operations in over 60 countries worldwide. The transaction is expected to close in late December.
The newly combined global company will be headquartered in Denver, Colorado, with major operations in Shanghai, Tokyo, Munich, Utah and more than 20 other countries.
Management believes that this will further strengthen New Age Beverage with the infrastructure to expand its portfolio of beverages worldwide. Total consideration for the transaction will be $85 million, consisting of $75 million in cash and $10 million in restricted stock based on the 40-day volume-weighted average price from closing.
At closing, Morinda will be bringing a minimum of $25 million in working capital and no debt. Additional contingent consideration may be made to Morinda owners based on EBITDA performance in 2019.
Kerry Asay, CEO of Morinda commented:
We are so excited to be combining with New Age. When we envisioned what we could achieve with New Age’s portfolio through our system, we knew how transformative it could be for all our employees and independent distributors around the world. I have guided Morinda since its creation for the past 22 years, and am so proud of what we have accomplished. I am highly confident that Brent will lead our company to even greater heights, and I am very excited to become a shareholder of New Age. Now as a public company, with all the resources that Morinda will bring to the integrated Company, we see tremendous potential for all our employees, independent distributors and shareholders for growth and significant wealth creation.
Shares of New Age Beverage were last seen up 11% at $5.16, in a 52-week range of $1.30 to $9.99. The consensus analyst price target is $5.00.