Golden Grail Beverages, a US-based soft drinks supplier, has ended its asset purchase agreement with co-packing business United Product Development Corporation (UPDC Beverages).
The planned deal, first revealed in December and later amended at the end of the same month, “will not be moving forward”, Golden Grail said in a statement.
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Under the amended agreement, the company would have acquired and integrated the “operational assets” of UPDC Beverages, instead of purchasing the company “as a wholly owned subsidiary”.
Without disclosing the details, Golden Grail said that following “careful consideration and evaluation, both parties have mutually agreed to terminate discussions”.
Scott Lomu, CEO of Golden Grail added that the company believes in its “strategic growth initiatives” but does not view this deal to be in the “best interests” of shareholders.
UPDC Beverages’ Naples, Florida facility specialises in bottling, canning, and filling various beverages, including energy drinks and carbonated beverages.
Golden Grail assured that the decision “does not affect” its ongoing operations and reaffirmed “its commitment” to growing its drinks portfolio via “other strategic initiatives”.
Lomu added: “We remain committed to pursuing strategic opportunities that align with our core business objectives and create value for our stakeholders.”
The company is to continue assessing opportunities that align with its growth plan and offer more value to shareholders.
In August, Golden Grail Beverages announced a new direction, aiming to grow its drinks business while pursuing a commodity-based acquisition strategy.
This includes plans to acquire companies in the gold, oil and gas, cryptocurrency, and water industries.
At the time, Lomu said” We plan on growing our current business operations in the water and drink industry.”
