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Asia Distribution Solutions Ltd Announces Merger with Yarraman Winery, Inc to Become Global Beverages Asia, Inc.
Source: Yarraman Winery, Inc
16/02/2009
New York, Feb 13 - Yarraman Winery, Inc., an Australian based wine company, today announced that the stock acquisition of Asia Distribution Solutions Limited (ADSL), a leading Chinese distributor of wine and spirits throughout China for beverage companies worldwide, has been accepted by more than 90% of ADSL's shareholders and the acquisition is expected to close within the next ten business days.
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After completion of the acquisition of ADSL's shares by Yarraman, Yarraman intends to change its name to Global Beverages Asia, Inc. ("Global Beverages"). Global Beverages will retain Yarraman senior management to continue to operate its winery and vineyard in Australia and some of the current board of directors. Shares are expected to be quoted on the Over-the-Counter (OTC) Bulletin Board in the second quarter of 2009. Newbridge Securities Corporation acted as M&A Advisor to Yarraman on the transaction.
Global Beverages is building a national retail and distribution footprint in China by continuing its consolidation of highly accretive acquisitions at low multiples in a fragmented Chinese beverage distribution market. Global Beverages has just recently opened the first and one of several planned Big Box retail superstore concepts in Wenzhou for beers, wines and spirits.
Acquisition of 458 Acres of Jugiong Vineyard
In connection with this merger the newly enlarged Group will acquire Jugiong a 458 acre vineyard to provide wine making capacity which will supply wine at all levels for the Chinese market, including entry mid-range and super premium wines.
The integration of the Yarraman winery and proprietary vineyards operation with ADSL's business will be a key driver for growth as:
-- It will provide a reliable supply of quality imported wines in a rapidly expanding Chinese market where a large shortage of foreign imported brands is expected.
-- Proprietary branded wines will increase our margins.
-- The tangible assets of Yarraman are approximately $40 million USD (1,319 acres of vineyard land, inventory & bottling facility).
-- The combined business will present a stronger platform from which to develop a substantial high-growth beverage business via its distribution platform in addition to the new Big Box retail outlets which will serve the ever expanding Chinese market and will be rolled out in China either through joint ventures or franchise agreements.
Steve Wong Appointed CEO of Global Beverages
Steve Wong will be appointed CEO of Global Beverages. Mr. Wong was formerly the head of Pepsi-China, in charge of opening new markets and logistical distribution, as well as the former CEO of Sara Lee-China. Mr. Wong has over 25 years experience in the food and beverage industry with multinational corporations in China.
Steve stated, "China is the world's largest and fastest growing beverage market and the largest global beer consuming market -- estimated to be $36 billion USD with 8% annual growth. In addition, China's wine consumption is estimated to be approximately $4.8 billion USD and growing at 6.5x the global market."
Steve Kulmar Joins the Board as a Non-Executive Director
Mr. Kulmar has an international reputation in working with some of the world's largest beverage retailers. He will be joined with Richard Broug, who was responsible for repositioning and revitalizing Coles in Australia into an AUD $10 billion enterprise by integrating the private label procurement and bring $250 million of new products, increasing sales by 16% and margins by 300 basis point. He was also responsible for developing the import strategy which resulted in up to 50% margin improvements in various categories and Steve Kulmar brings considerable experience in Big Box retailing. The first store opened in Wenzhou and this will be followed shortly by Shanghai which opens in April. Shanghai has a population estimated at 20 million and incomes among the highest anywhere in China. This region accounts for nearly 1/3 of mainland China's GDP.
"The completion of the merger with Yarraman and the listing of our stock in the US public market represent the completion of several steps that we have taken to financially position the Company for future growth," said Mr. Michael Kingshott, current Chairman of ADSL and the soon to-be appointed Chairman of Global Beverages.
Mr. Kingshott also stated, "The considerable expertise that the combined boards are putting in place in GBA will allow us to capitalize on the vast Chinese market. The board of ADSL recognized that for the Company's continued growth in China as a leading player in the beverage, retail and distribution of beers, wines and spirits, it would need to complement its business and broaden its resources.
"Yarraman's excellent reputation and capacity as a high-grade wine production company provides a perfect complement. The additional expertise that we now have assembled will allow the Company to extend its distribution operations into the Big Box retail market, thus benefiting both from the HORECA trade and direct retailing of its wide range of beverage products."
AI
