NewAge Completes the Planned Divestment of its ‘Brands Within Reach’ Group
September 29 2020 - 07:00AM
NewAge, Inc.
(Nasdaq:
NBEV), the Colorado-based omni-channel
sales and distribution company with a network of independent
business owners across 75 countries worldwide, today announced that
is has signed and closed a definitive agreement with Zachert
Private Equity to sell its ‘Brands Within Reach’ group and
associated retail brands effectively immediately.
Brent Willis, Chief Executive Officer of NewAge,
commented, “Given our principal focus on the highly profitable and
growing direct-to-consumer channels, now was the most opportune
time to minimize resources to smaller and less profitable
components of our business. Our direct business was profitable on a
stand-alone basis in 2019, and we expect to continue to build upon
it, which will further enable NewAge to drive improved growth and
profitability across our global omni-channel business model.”
Olaf Zachert, Managing Director of Zachert
Private Equity, commented, “We see a great potential in the
portfolio of these brands. We look forward to a successful
collaboration with Olivier Sonnois who will be joining our team as
part of the agreement. This acquisition will be followed by further
acquisitions in the non-alcoholic beverage sector, as we continue
to expand our footprint in the United States.”
The divestiture includes sales of the membership
interests and assets of NewAge’s subsidiary, Brands Within Reach,
LLC (“BWR”), including the licensed brands Nestea, Volvic, Evian,
Illy, Kusmi Tea, Saint Geron and various other retail brands,
including Xing, Búcha Live Kombucha, Aspen Pure and CoCo Libre.
Details of the transaction can be found on Form
8-K filed with the Securities and Exchange Commission.
On July 20, 2020, NewAge, Inc., announced the
signing of a definitive agreement to acquire ARIIX and four other
e-commerce/direct selling companies. The combination is expected to
create a company with expected annual revenues of more than $500
million, a blended gross margin of 70%, and expected EBITDA of more
than $30 million.
About
NewAge, Inc.
(NASDAQ:
NBEV)NewAge is a Colorado-based
organic and healthy products company dedicated to inspiring and
educating consumers to “Live Healthy.” The Company is an
omni-channel distributed company with access to traditional retail,
e-commerce, direct-to-consumer, and medical channels across 75
countries worldwide when its merger with Ariix is completed. The
Company operates the websites www.newage.com and
www.noninewage.com.
About Zachert
Private Equity WWW.ZACHERT-PE.COM:
Zachert Private Equity takes over incorporated
companies with negative contribution margins for the short term
from corporate groups or owners, who do not want to get involved in
restructuring efforts of their own. We apply a cross-sectoral and
cross-border approach, even for complex international takeovers and
initial situations. It can be expected based on our special focus
on loss-making companies that the implementation will be swift and
professional.
The objective of each transaction is to continue
the company and save jobs. Our focus rests on a successful
restructuring and adjustment of the business model. At the same
time, we do not rule out strategic acquisitions as part of a buy
& build strategy. As a specialized investment company, we can
implement change processes quickly and efficiently. This is the
cornerstone for a successful and trusting restructuring, so that a
constructive atmosphere can result.
Safe Harbor DisclosureThis
press release contains forward-looking statements that are made
under 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 expectations
regarding future results of operations, economic performance,
financial condition and the acquisition of ARIIX, statements about
the benefit of the ARIIX transaction. 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 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. NewAge competes in a rapidly growing and
transforming industry, and risk factors, including those disclosed
in the Company's filings with the Securities and Exchange
Commission, might affect the Company's operations. Unless required
by applicable law, the Company undertakes no obligation to update
or revise any forward-looking statements.
NewAge has exclusively partnered with the
world's 5th largest water charity, WATERisLIFE, to end the world
water crisis with the most innovative technologies available.
Donate at WATERisLIFE.com to help us #EnditToday.
For investor inquiries about
NewAge please contact:
NewAge Investor
Relations:Riley TimmerVice President, Investor
RelationsTel: 1-801-870-8685Riley_Timmer@NewAge.com
Investor Relations Counsel:John
Mills/Scott Van WinkleICR – Strategic Communications and
AdvisoryTel: 1-646-277-1254/1-617-956-6736newage@icrinc.com
NewAge,
Inc.:Gregory A. GouldChief Financial
OfficerTel: 1-303-566-3030Greg_Gould@NewAge.com
A photo accompanying this announcement is
available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/038fd0ab-7e93-4585-82b7-0cf103c6edaa
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