DRINKS AMERICASâ€™ LETTER of INTENT to PURCHASE OLIFANT VODKA
DRINKS AMERICAS Holdings Ltd. has executed a conditional letter of intent to purchase 9O% of Olifant Vodka for a total consideration of $1.4 million, to be paid over four years. A 1O% interest will be retained by Jack McKenzie, the President of Olifant USA, a growing nationally distributed vodka manufactured in Holland, with current annual volume of approximately $1.2 million.
The Company explained that the prospective Olifant acquisition is a logical extension of its business plan, securing an existing and fast growing brand in anticipation of adding an iconic association that will further enhance its sales. The Company believes that this acquisition will be accretive to earnings, provide purchasing and production efficiencies and economies of scale, broaden its distribution pipelines, and enhance the sales and marketing team.
While there can be no assurance that a definitive agreement will be completed and executed, or that a closing will indeed take place, the companies are currently expecting that the proposed transaction will close prior to the end of the year.