VANCOUVER, British Columbia, Canada – DTS8 Coffee Company, Ltd. announced on Tuesday that it has executed a definitive agreement to acquire one hundred percent (100%) of the issued and outstanding shares a private, U.S. roasting company.
Closing of the transaction is expected on or before August 1, 2016, subject to financing and receipt of 2015 audited financial statements from the target company.
“The acquisition of a roasting company is consistent with our growth plans and opens up exciting opportunities for us in the lucrative specialty coffee market. It provides us with presence and roasting facilities both in the mature US market and the rapidly growing Chinese coffee market.”
The purchase price for the acquisition is $4,500,000, in cash at closing, or, if the total amount is not paid in cash, $4,700,000 in cash and debt at closing. There will be no changes to the current management or operations of the private corporation after closing.
Mr. Doug Thomas, CEO of DTS8 Coffee, said, “The acquisition is expected to be accretive to earnings of DTS8 Coffee in the first full year following the closing in the range of ten to twelve million dollars on an annualized basis.”
Thomas added that, “The acquisition of a roasting company is consistent with our growth plans and opens up exciting opportunities for us in the lucrative specialty coffee market. It provides us with presence and roasting facilities both in the mature US market and the rapidly growing Chinese coffee market.”
DTS8 Coffee Company, Ltd. (“DTS8”) is a purveyor of gourmet-roasted coffee in China. DTS8 roasts, markets and wholesales the “DTS8 Premium”, “Single Origin Premium”, “Don Manuel”, and “Private Label” brands in Shanghai and others areas of China.
