Verus International Inc (VRUS)

[Renegades17]

Don't disagree, but it wasn't the point of the question

The exercise was to revise the stale guidance provided in July. The strategic rationale is a separate discussion.

To your point, the big opportunity that I see from the french fry deal was to increase exposure to HORECA. Anshu previously (go back to calls from 2017) talked about channel margins in that segment being well north of the traditional distribution business (he did state that gross margins could be as high as 60%, though I'm not sure how accurate that is).

French fries were also a core product that Anshu outlined at the very beginning of his tenure. So from a strategic perspective, it checks a lot of boxes and was seemingly a very attractive deal from a financial point of view.