- Adds ≈$10 million in revenue and enables New Age to penetrate fast growing ready-to-drink coffee and relaxation drink segments
- Follows management agreement from October 2016, whereby New Age assumed operational control of the Marley Beverage Company brands
DENVER, CO / ACCESSWIRE / June 14, 2017 / New Age Beverages Corporation (NASDAQ: NBEV) the Colorado-based Company that markets the brands XingTea®, XingEnergy®, Aspen Pure® PH and Aspen Pure® Probiotic Water, Búcha® Live Kombucha, Marley One Drop® Coffee, and Marley Mellow Mood® Relaxation Drinks, today announced the closing of the acquisition of the assets of the Marley Beverage Company, LLC, including the Marley brands in ready-to-drink coffee and relaxation drinks and teas. The line complements the existing New Age Healthy functional beverage line and fills an important role in the Company's portfolio.
New Age Beverages Corporation has been leading the marketing, sales, and distribution of the Marley business since late last year leveraging its infrastructure to significantly reduce costs and leveraging its national distribution network and key account relationships to expand the portfolio. New Age recently announced the first new product in the Marley line with the development and impending launch of Marley Mate, an organic yerba mate tea rolling out nationally beginning in Q3 2107.
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.
The final transaction consideration consisted of 3.00 million shares of common stock plus a potential earn out based on performance in return for substantially all of the assets of Marley Beverage Company, LLC. The Marley Beverage Company paid $1.0 million in management fees to the Company under the terms of the management agreement.
New Age entered into a management agreement on October 24, 2016 to integrate the sales, marketing and distribution of the Marley Beverage Company into New Age. Since that time, the commercial organizations have been operating as one gaining important increased scale and relevance with major retailers and distributors.
With the addition of the brands of the Marley Beverage Company and its recently announced acquisition and addition of Coco-Libre, New Age will now have a competitive brand in each of the 5 fastest growing segments of the $870 billion beverage category. Each of New Age's competitive brands is either organic or all natural with no preservatives, no high fructose corn syrup, no GMOs, and no compromises.
As part of the combination, the team has identified more than $5.5 Million in cost and revenue synergies to be gained over the next 12 months, of which more than $3 million in immediate savings in operating expenses and infrastructure convergence have already been captured.
In revenue synergies, the group has already integrated the Marley Beverage Company portfolio into its existing operations and sales force, major DSD distribution partners, and New Age's national major food, drug, mass, and convenience retail customers. New Age also utilized its research and development expertise to develop the Marley Mate brand, a certified organic Yerba Mate Tea rolling out through New Age's system nationally in Q3 2107.
Brent Willis, Chief Executive Officer for New Age Beverages commented, "Some of the best things in life are worth waiting for, and we were more than happy to be patient to bring in a brand with global relevance and more than 74 million Facebook followers. With the acquisition we will now be able to consolidate the Marley results into New Age fully in Q3 2017. We are building a great portfolio of differentiated brands all competing in the growth segments of beverages, and know that the Marley family of brands will be a tremendous addition."
About New Age Beverages Corporation (NASDAQ: NBEV)
New Age Beverages Corporation is a Colorado-based, leading all-natural tea and healthy functional beverage company that was founded in 2003. The Company competes in the fast growing healthy functional beverage segments including Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks, Coconut Waters and Functional Waters with the brands XingTea®, Marley One Drop®, Búcha® Live Kombucha, XingEnergy®, Marley Mellow Mood®, Coco-Libre®, and Aspen Pure® PH and Aspen Pure® Probiotic Water. The Company's brands are sold across all 50 states within the US and in more than 10 countries internationally across all channels via direct and store door distribution systems. The company operates the websites www.newagebev.us, www.newagehealth.us, www.mybucha.com, www.xingtea.com, www.aspenpure.com, www.drinkmarley.com, and www.cocolibre.com.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company including statements regarding New Age Beverage's expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. New Age Beverages competes in a rapidly growing and transforming industry, and other factors disclosed in the Company's filings with the Securities and Exchange Commission might affect the Company's operations. Unless required by applicable law, New Age Beverages undertakes no obligation to update or revise any forward-looking statements.
For investor inquiries about New Age Beverages Corporation please contact:
Amato and Partners, LLC
Investor Relations Counsel
SOURCE: New Age Beverages Corporation