RushNet, Inc Buys Chicago Beverage Distributor
Last Update: 9:44 AM ET Apr 17, 2007
BLUE ISLAND, Ill., Apr 17, 2007 (BUSINESS WIRE) -- RushNet, Inc. (Pink Sheets:RSHN) is pleased to announce that the company has signed a contract to acquire the assets of Garden Beverage, Inc., a Metro-Chicago beverage distributor. Garden Beverage will become a subsidiary of RushNet, Inc in an acquisition that was financed entirely by RushNet. The very capable Garden Beverage management team will continue to operate this growing distributorship through the transition period, and they will also play an integral role in the future direction and operation of the three year old company.
Garden Beverage hit its 2006 sales projection with revenues in excess of $5 million, and sales during Q1 of 2007 exceeded those for the same period in 2006. RushNet is implementing an aggressive growth strategy for Garden in 2007 that includes both an expanded distribution territory and deeper penetration into their existing territory for the fine, high-performing brands they handle. Additionally, two new divisions are being created that will focus on health-orientated Specialty Beverages and On-Premise sales. To support all of the above RushNet intends to add additional personnel and trucks to meet the anticipated demand in the 2007 summer beverage season.
RushNet President Robert Corr stated: "I'm glad we got this deal done as it, importantly, gives us a division focused entirely on distribution in our home market. Garden Beverage is an inspired company and has grown impressively in a short time to become a real factor in the beverages it distributes. I am looking forward to working with all of the people there to help take them to the next level. As I've stated before it's only by controlling your distribution that a company ensures its success and longevity in the beverage industry. In the 3rd largest market in the U.S. we now have that platform, and it will give the people at Garden and the brands they carry, along with RushNet's marketed brands, the deeper market penetration and rich growth."
He continued, "It's a fine opportunity now for RushNet and its shareholders to see real appreciation in their investments in the future. Some proposed deals turn out to not be in the best interests of shareholders, i.e. burdensome debt and ownership dilution, and we back away from them like the brewery acquisition and PPM announced last year. However, we continue to explore other opportunities in the manufacturing of beverages which would be the third phase of RushNet's long- term growth strategy, distribution is the second. We got the Garden deal done in eight months, which is within the customary window for such things. I want to thank our shareholders for their patience and support of us." |
