Splash Beverage Group, Inc. (NYSE:SBEV) (“Splash” or the “Company”), a portfolio company of leading beverage brands, today announced it has entered a (non-binding) Term Sheet to fund acquisitions. The Credit Facility will act as a credit reservation agreement (up to an undisclosed amount) for multiple acquisitions and will provide acquisition financing at the current Euribor rate plus 1.5% and will mature in 7 to 10 years depending on each individual acquisition.
“This Credit Facility is designed to provide the financial backing for us to execute on a key feature of our business strategy, growth through acquisition,” said Robert Nistico, Chief Executive Officer of Splash Beverage Group. “We have built our organization with the intention of embarking on a series of significant acquisitions, with key officers, our President, CFO, Controller, National VP of Sales, etc., all with experience working with larger companies. This partnership will provide the financial capabilities to proceed with our vision. We intend to target brands accretive to Splash with revenues between $20 million and $75 million, as we believe that is the sweet spot for adding value by folding these brands into our proven management team and our distribution channels.
“Each acquisition will be treated as a separate transaction and does not limit us to just one brand and/or company. We will be opportunistic with our strategy, and believe we are poised to take a substantial leap forward in our growth trajectory at an opportunistic time in the beverage market; timing is everything and now is the time.” Nistico added, “We believe this provides us the strength and flexibility to act quickly in a challenging capital market environment, without the need for highly dilutive fund-raising activities.”
