Drinks Americas has announced plans to buy Global Beverages Asia.
The company, with a portfolio including Kid Rock Beer and Trump Vodka, has entered into a non-binding Letter of Intent to purchase, for stock, Global Beverages Asia (GBA).
GBA will be the new name for the combination of Yarraman Winery and Asia Distribution Solutions (ADS). ADS is in the process of being acquired by Yarraman, an Australian- based vineyard and winery operation, which, together with its Jugiong Vineyard, has the capacity to produce 160,000 cases of wine per year.
The Drinks Americas portfolio will be added to the products currently sold by ADS in China and Yarraman's global sales and export arm selling wines in Australia, Europe, and throughout the Pacific Rim.
ADS currently has Chinese operations in Shanghai, Chengdu, Beijing, and Shenzhen through wholly-owned distributors.
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.
“Assuming a consummation of this acquisition, the entire business enterprise will have more than $20 million in current sales, over $40 million in net tangible assets, accretive earnings, and a growing business infrastructure capable of efficient international distribution of proprietary products."
The acquisition by Drinks Americas is subject to legal paperwork.
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.