Global Beverage Solutions, Inc. (OTCBB:GBVS) (“Global Beverage”) today announced it has completed the acquisition, pursuant to a merger transaction, of XStream Beverage Network of Maryland, Inc., a wholly owned subsidiary of XStream Beverage Network, Inc. (OTCBB:XSBV) (“XStream Beverage”). Based in Jessup, Maryland, XStream Beverage Network of Maryland, Inc. (formally Master Distributors, Inc.) is a leading Mid-Atlantic New Age beverage distributor. The company had revenue of $10.2 million in 2005 with EBITDA of $426,000.
According to the terms of the merger agreement, XStream Beverage will receive 60,500,000 shares of common stock of Global Beverage. In addition, Global Beverage issued a $2 million note payable to XStream Beverage. The transaction was effected through Global Merger Corp., a wholly owned subsidiary of Global Beverage.
XStream Beverage President Jerry Pearring will step down from his executive and board positions at XStream Beverage to serve on the board of directors and become the Chief Executive Officer of Global Beverage. Ted Farnsworth will continue to serve as XStream Beverage’s Chairman and CEO.
“This is a very significant development for the growth and maturation of our Company,” said Ross Silvey, President of Global Beverage. “Aside from the revenues and earnings that Beverage Network of Maryland, Inc. will bring to our Company, it will also serve as a distribution platform for the Rudy Beverage brand as well as any new brands that Global Beverage acquires or introduces. Moreover, our management team with be strengthened will the addition of senior executives from XStream Beverage who have extensive experience and expertise in the beverage industry specifically as it relates to launching new brands.”
About Global Beverage Solutions, Inc.
Global Beverage Solutions, Inc. (OTCBB:GBVS) invests in a portfolio of companies in the beverage industry. Its portfolio companies include EON Beverage Group, Inc. and Rudy Beverage, Inc. For additional information, please visit www.globalbeveragesolutions.com.
About XStream Beverage Network, Inc.
XStream Beverage Network, Inc. is an emerging brand development and distribution company in the fast growing $21 billion ‘new age’ beverage industry. XStream Beverage develops markets, sells and distributes innovative new age beverage natural sodas, fruit juices, and energy drinks. In addition, XStream Beverage also operates as a wholesale distributor of highly recognized third party new age beverage brands such as Fiji Water, Arizona and Welch’s.