Kiju sold for $8M to reduce debt
GreenSpace Brands and Zurban Beverages are pleased to announce the sale by Greenspace of the Kiju brand of organic juice and iced tea.
The sale went through for $8 million, representing a transaction value of approximately 1x net sales of $8.3 million.
The Kiju branded business represents approximately 10 per cent of the revenue of GreenSpace and the divestiture represents approximately 40 per cent of the market cap of GreenSpace as of closing on Friday, May 17.
"We're thrilled to be selling the Kiju brand to Zurban, and we're very proud of how we've strengthened and developed the Kiju brand over the last few years, particularly as it relates to the launch of Kiju Fit." said Matthew von Teichman, CEO of GreenSpace Brands in a press release. "This transaction is significant for many reasons, not the least of which is that we feel it establishes a value for the rest of the brands in our portfolio of at least 1x sales, it helps to pay down some debt and it gives us some much needed additional working capital. The sale of Kiju, although bittersweet for us, is an important milestone in our evolution as a company."
The Use of Proceeds from the transaction will be used for general working capital purposes, and to pay down debt, which is estimated to be $13-$15 million post closing, including the VTB note from the Galaxy transaction.
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