Combined Entity Will Become Dominate Player In Rapidly Growing Oxygen-Enhanced Water Category
Aqua Clara Bottling & Distribution of Clearwater, Fla., has entered into a non-binding letter of intent to acquire BEVsystems International, Ltd. of Miami, a private corporation. Financial terms of the stock-based transaction, which is subject to shareholder's approval, were not disclosed.
Aqua Clara also announced a 1 for 10 reverse stock split of its common stock as part of the transaction. Aqua Clara will be renamed BEVsystems International, Inc. The company said it was considering a change of its stock symbol.
As of August 31, 2001 BEVsystems and its Life O2 brand have achieved revenues of $3.2 million for the current calendar year with net stockholders equity of $5.3 million. For the six-months ended September 29, 2001, Aqua Clara had revenues of $335,869 and net shareholder equity of $1.7 million
The transaction will give Aqua Clara the leverage of BEVsystems' internationally-distributed bottled water brand, Life O2, and the proprietary Life O2 SuperOxygenation process. Aqua Clara also will acquire technology with 25 patents issued in the United States and foreign countries. The technology allows BEVsystems to infuse its Life O2 brand and global co-branded products with up to 15 times more oxygen than ordinary bottled water.
Life O2 and other co-branded products that utilize the Life O2 SuperOxygenation process are available in 22 countries worldwide. Since introduction, Life O2 has sold more than 42 million bottles to international consumers. BEVsystems' equipment, which infuses bottled water with medical grade oxygen, is installed in 11 international bottling plants.
Following the transaction, the new BEVsystems International, Inc., (formerly Aqua Clara) will shift much of the production of Life O2 SuperOxygenated Water to the current Aqua Clara bottling facility, located on 2.1 acres in Clearwater, Florida. Increased volume at the facility will improve operating efficiencies and reduce production costs for all bottled water brands produced by the new company.
"We're confident the acquisition of the existing BEVsystems company and its assets will bring strong management and leadership skills to Aqua Clara," said Douglas Cifers, Aqua Clara chairman. "Additionally, the combined entity will clearly become the dominate player in the rapidly growing oxygen-enhanced water category."
G. Robert Tatum, the current Chairman & CEO of BEVsystems International, will become Chairman & CEO of the combined entities. Mr. John C. Plunkett, currently President & CEO of Aqua Clara, will become Operations Manager of the new BEVsystems, responsible for worldwide operations and new product development.
Aqua Clara anticipates the merger will close within 60 days. However, the Letter of Intent is subject to shareholder approval, final due diligence and definitive agreements and there are no assurances it will be consummated.