Reed's set to purchase Jones Soda

March 9, 2010
/ Print / Reprints /
ShareMore
/ Text Size+

Reed’s Inc., Los Angeles, has made an offer to acquire Jones Soda Co., Seattle, for a combination of $2.56 million in cash and 4.5 million shares of Reed’s common stock.

Under a letter of intent, the two companies have until April 5 to negotiate a final agreement, and a merger would have to be approved by shareholders of both companies.

A merger would allow the companies to streamline some aspects of its business, including administration, operations and customer interface, the companies said.

“We have watched Jones for years and have been impressed with its innovative marketing programs, strong brand recognition and customer following,” said Chris Reed, Reed’s founder, chairman and chief executive officer, in a statement. “I am confident that our portfolio of brands will benefit from Jones Soda’s marketing savvy as well as its organization’s deep mainstream business relationships. At the same time, we believe our strong infrastructure and operational capabilities will help drive important efficiencies through Jones Soda’s supply chain.”

Jones Soda has been working over the past year to return to profitability, but the combination of the recession and the company’s capitalization has forced the merger, said Rick Eiswirth, chairman of the Jones Soda Co. board, in a statement. The company also announced that Joth Ricci, Jones Soda’s chief executive officer, will step down on April 2 to pursue other business opportunities.

“After evaluating a range of strategies aimed at improving our outlook, our board of directors determined that the proposed merger with Reed’s offers our shareholders the most compelling long-term benefits of the available alternatives,” Eiswirth said in a statement.

If the companies complete the merger, Jones Soda shareholders would receive about 0.17 of a share of Reed’s common stock per share of Jones Soda common stock and cash of $0.10 per share, the company said.

If Reed’s cannot secure all or part of the cash, the deficit would be paid in additional shares of Reed’s common stock equal to the cash deficit divided by $1.70, Reed’s said.

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Dinner with Tequila Don Julio

Diageo is taking its Tequila Don Julio brand on the road this summer with a rolling Airstream Speakeasy mobile craft cocktail bar. The team stopped in Chicago on July 29 to share some specialty tequila cocktails paired with food from Chicago restaurants Honey Butter Fried Chicken and The Radler as well as dessert venues Black Dog Gelato and Baker Miller. (Photos by Jennifer Haderspeck)

9/17/14 2:00 pm EDT

The Path to New Product Success: Navigating the latest trends for new beverage development

By attending this webinar, you will learn about the top trends and how they fit into the CPG market, which channels are influencing new products and technology, how Packaging fits into your product development, and ways you can use innovation to increase sales.

Podcasts

Maintaining beverage dispensing equipment

Iuliana Nita, Saint-Gobain Performance Plastics global marketing manager of food and beverage, offers her insights about ensuring sanitary performance of beverage dispensing equipment in foodservice applications. She also will offer some tips about choosing the right kind of tubing to handle acidic beverages.

Beverage Industry Magazine

BI August 2014 cover

2014 August

The August 2014 Beverage Industry includes a cover story on KeVita, as well as articles about beverage consumers, natural and organic varieties, smart snacks, and more. Check it out today!

Table Of Contents Subscribe

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

Best Beverage Categories

Which beverage category will perform the best in the second half of 2014?
View Results Poll Archive

THE BEVERAGE INDUSTRY STORE

cleaning-in-place-dairy-foo.gif
Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products

Webinars

Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!

STAY CONNECTED

facebook40 twitter    youtubelinkedgoogle+ icon 40px