Minerco Resources Inc. in Houston, Texas, has acquired a 30% stake in Brea-based Avanzar Sales and Distribution LLC for $500,000.
Avanzar distributes food and beverages to some 3,200 locations, including Whole Foods, Walgreens, Albertsons, Circle K and other retailers. It already handles Coffee Boost and other products manufactured by Minerco’s subsidiary Level 5 Beverage Co.
Bill Juarez will remain president of Avanzar, which had annual sales of $2.6 million in 2013 and expects to reach $2.7 million this year, according to the company.
The deal calls for Level 5 to have a majority voting interest in Avanzar’s operations, with an option in increase its stake to 75% with payments based on future revenue. Terms also require all of the funds used in the acquisition to be “deployed entirely and solely to expand Avanzar’s distribution business and not to be paid to Avanzar shareholders.”
“This acquisition broadens our base in the beverage industry through vertical integration and immediately strengthens our asset valuation and top line revenues,” V. Scott Vanis, Minerco’s chairman and chief executive, said in a statement.