Jones Soda and Simply Better Brands are merging.
A merger agreement has been struck between Simply Better Brands Corp. (SBBC), a company that produces plant-based and holistic health consumer products, and Jones Soda Co., a premium craft beverage manufacturer located in Seattle.
All of Jones’ issued and existing common shares will be acquired by SBBC as part of the deal at a deemed value of 75¢ per share. Payment will be made in fully paid and non-assessable SBBC common shares at a price per share of $3.65. Furthermore, SBBC has consented to take on all of Jones Soda’s unpaid debt. According to the corporations, the deal has an approximate total value of $98.9 million.
If the deal closes, the combined business is anticipated to boost shareholder value through operational synergies and faster sales growth in three categories: plant-based wellness (PureKana, Seventh Sense, Herve, Mary Jones, and CBD and THC); food and beverage; and health and beauty (No BS Skincare).
“Our growth model remains consistent: acquire and build emerging Gen Z and millennial brands in the wellness space through category, channel and geographic expansion,” said Kathy Casey, chief executive officer of SBBC. “We see joining forces with Jones as an incredible fit due to a common wellness mission, consumer cohort, and leadership approach. Our previous acquisitions of PureKana, Trubar and No BS brands have yielded tremendous opportunities to fuel our growth and we are thrilled to have the opportunity for the iconic Jones brand to join our expanding portfolio. We believe that in addition to solving consumer problems in the wellness place, this latest move will be fundamental to driving shareholder value.”
According to Jones Soda CEO Mark Murray, the acquisition gives the company a chance to diversify its primary line of business, which is craft beverages.
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In addition to powerful consumer brands, Mr. Murray stated, “we are bringing together two strong management teams that we believe will deliver growth and operational synergies.”
Following the transaction’s conclusion, SBBC said that it would select a new trade symbol and rename itself as Jones Soda or a similar moniker. The Jones Soda shares will also be delisted from the Canadian Securities Exchange at that point.
Among the companies owned by SBBC is Tru Brands, Inc., which was purchased in August 2021. The health and wellness company Tru Brands specializes in providing women with wholesome snacks. Established in 2018, Tru Brands provides a range of protein bars that resemble desserts, crafted from plant-based components such brown rice protein, chocolate, and cassava.