Jones Soda receives acquisition offer from Big Red
December 22, 2009
Big Red Holdings Corp., Austin, Texas, made an offer to acquire Jones Soda, Seattle, for a cash purchase price of $0.30 per share of common stock. Jones Soda has been considering strategic alternatives, and its board of directors will conduct an evaluation of Big Red’s offer. The company indicated it may negotiate with carbonated soft drink manufacturer Big Red or choose to pursue other available avenues to enhance shareholder value, it said.
“We have strived over the last 12 months to streamline our business by reducing costs and focusing on our core glass bottle business,” said Joth Ricci, Jones Soda’s president and chief executive officer, in a statement. “We have achieved improved year-over-year bottom-line results on lower case volumes, and we believe in the strength of the Jones Soda brand. However, adverse economic conditions have continued to negatively impact our liquidity and financial condition and caused us to explore strategic alternatives in an effort to enhance shareholder value.”
In February, the company retained North Point Advisors, San Francisco, to assist in evaluating Jones Soda’s strategic alternatives. Jones Soda has reviewed a broad range of options to enhance shareholder value, including the continued execution of the company’s business plan, potential fundraising opportunities, strategic partnerships and distribution agreements as well as potential combinations with strategic and financial investors.
Jones Soda indicates Big Red’s offer is under consideration and may not result in any agreements or transactions. Big Red Inc. is the manufacturer of eight varieties of carbonated soft drinks, which are distributed in 43 states.