TULSA, Okla. -- Global Beverage Solutions Inc. said it has signed a letter of intent to acquire XStream Beverage Network of Maryland Inc., a wholly owned subsidiary of XStream Beverage Network Inc. Based in Jessup, Md., XStream Beverage Network (formally Master Distributors) is a Mid-Atlantic New Age beverage distributor. The company had revenue of $10.2 million in 2005.
According to the letter of intent, XStream Beverage Network will receive common stock in Global Beverage Solutions and issue a $2 million note payable to XStream. The letter of intent [image-nocss] is subject to due diligence by both parties and reaching a mutual agreement to the common stock component of the transaction.
It is anticipated that XStream President, Jerry Pearring, will become president and CEO of Tulsa, Okla.-based Global Beverage following the transition.
This is a very significant development for the growth and maturation of our company, said Richard Clark, chairman, CEO and president of Global Beverage. Aside from the revenues and earnings that XStream Beverage Network of Maryland will bring to our company, it can also serve as a distribution platform for the current Rudy Beverage and EON Beverage brands, as well as any new brands we might acquire or introduce in the future. Moreover, our management team will be strengthened with the addition of senior executives from XStream Beverage Network who have extensive experience and expertise in the beverage industry specifically as it relates to launching new brands.
XStream Beverage Network is an emerging brand development and distribution company in the beverage industry. XStream develops, markets, sells and distributes New Age beverage natural sodas, fruit juices and energy drinks. In addition, XStream also operates as a wholesale distributor of third-party New Age beverage brands such as Fiji Water, Arizona and Welch's.
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