Replies to post #254 on NewAge Inc (fka NBEVQ) (NBEVQ)

[joenatural]

I read the BevNet article and although it's a very nice piece, it's a little misleading, as it leads people to believe the sales of the acquiree is $14 million, but $14 million is Xing Tea and the remainder of the portfolio brings the total to $51 million.

[NewJerichoMan]

The Lebons have been shopping Xing for the past few years, looking for a way to buy out Carney, an aging co-founder of Pizza Hut who financed the brand’s early growth.

As for Xing, “We’ll have a good partner who can help us strategically,” said Tom Lebon. “It gives us the money to start doing marketing and the things we haven’t been able to do out there.”

Perhaps a peek into the motivations of why a company with reportedly $50M in revenues would sell itself for only $20M in a combined cash and stock deal. Total Shark Tank move. It's better to own a smaller portion of a large pie (think "10X") than to own a bigger portion of a smaller pie (think "X").

The Shark in this case isn't Mark Cuban or Mr. Wonderful but rather Brent David Willis.