4:30 PM EDT March 28, 2008
HENDERSON, Nev.--(BUSINESS WIRE)--
Sipp Industries, Inc. (Pink Sheets: SIPC) announced today it has signed a letter of intent to purchase a small rectifier, QS, Inc. (DBA as Santa Fe Springs) in Albuquerque, New Mexico. This acquisition provides SIPP with an experienced production management team, the National U.S. Government approved license to manufacture and distill alcohol, a certified bonded warehouse and approximately $1 million in trailing revenue. The management of SIPP believes the bottling of its ultra premium Private Reserve will dramatically improve the Company's operating margins.
"This plant is the perfect size to handle the production of our Private Reserve for Private Label spirits," said Lee J. Danna, President and CEO of SIPP Industries, Inc. "It also provides us with the U.S. government licenses which allows us to expand and establish alcohol manufacturing facilities in other locations."
"SIPP provides us with distribution, a marketing team, and unique products as an opportunity to participate as shareholders in the growth of the Company's niche in the $38 billion adult beverage market place. We feel this is very exciting," said Mike Carver, President of Santa Fe Springs. "My partner, Bill Schreiber, and I each have over 30 years experience in the bottling and manufacturing business and we want to use every ounce of our experience to help SIPP realize its potential."
The agreement is a tax-free exchange with 100% in common stock and assumption of debt.
About QS, Inc. (DBA Santa Fe Springs), QS, Inc. has been in the bottling business since 1996. Their main brand, Santa Fe Springs, has been on the market since 1985. The main thrust of the business has been bottled water, flavored carbonated water, and alcohol co-packing.
About SIPP Industries, Inc.
SIPP is a wholesale marketing company in the alcohol beverage industry. SIPP markets specialty niche alcohol beverages. In addition, SIPP is also targeting acquisitions in this industry. Headquartered in Henderson, Nevada, SIPP became public on August 31, 2007 when it merged with a public shell which was renamed SIPP Industries, Inc. and is a listed company, SIPC.PK.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's current expectations and speak only as of the date hereof. Actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including uncertainties as to the nature of the industry, including changing customer demand, the impact of competitive products and pricing, dependence on existing management and general economic conditions. The Company's SEC filings discuss some of the important risk factors that may affect the Company's business, results of operations and financial condition. Management undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Source: SIPP Industries, Inc.
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