New Age Beverages Corporation NBEV on Friday confirmed the closing of its previously announced acquisition of Brands Within Reach.
This move increases New Age Beverages’ North American footprint. As a result, New Age Beverages now owns the licensing and distribution rights to some of the most popular drink brands within the United States.
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“We have been extremely busy integrating BWR and New Age," said Brent Willis, New Age Beverages CEO. "We have already integrated our sales and marketing organizations, have brought all our shared services functions to bear to benefit BWR, and are now harmonizing our operational footprint and supply chain. The process has gone extremely smoothly, and we are excited about the potential that the BWR brands represent in a number of our markets and channels, beyond just traditional retail.”
What’s Next
The two companies have been actively working on convergence including capturing more than $1.5 million in anticipated cost synergies that will accrue primarily in these areas: major distributor management, integrated warehousing and logistics, scale and efficiency benefits in transportation.
New Age Beverages also expects to achieve more than $10 million in revenue synergies within the first 18 months by cross-selling each other’s brands into existing key account relationships including Kroger, Costco, 7 Eleven, Circle K and others.
New Age Beverages traded about 3% lower Friday to $4.14 per share. The stock traded around $4.80 back on June 3 when the deal was first announced.
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