The Keepers to acquire Booze On-Line

The Keepers [KEEPR 2.17, up 4.8%; 436% avgVol] [link] is planning to acquire 100% of the outstanding shares of Booze On-Line Inc (BOLI). According to its website (boozeshop.ph), BOLI is “one of the leading companies engaged in importing and distributing global wines, spirits, and premium beers.” It is the exclusive distributor of Hoegaarden, Stella Artois, Becks, Leffe, Paulaner, Chimay, and Delirium Tremenes. BOLI’s site claims it has “over 350 customers around the country”, including “key on-premise accounts like The Distillery, Draft Gastro Pub, Olive Cerveceria, Beso Cucina Vinoteka, and Imperial Ice Bar”. KEEPR did not disclose the value of the acquisition but indicated that it is below KEEPR’s reporting threshold (>10% KEEPR’s book value). KEEPR is owned by Lucio Co, and specializes in imported wines and spirits. 

MB bottom-line: I don’t have any experience with BOLI or any special knowledge of the imported alcohol industry, but from a quick review of BOLI’s website, this looks like an acquisition that (1) consolidates KEEPR’s marketshare of certain premium spirits brands like Johnnie Walker and Jose Cuervo (among many others), and (2) smash-cuts KEEPR into the premium beer business with a collection of exclusive distributorships and what sounds like a mature sales channel for those brands. I don’t know how many of BOLI’s 350 customers are already in the KEEPR network for its premium wines and spirits. Some are bound to be redundant. But the bigger prize is that KEEPR will now have a bunch of new products that it can sling to its existing clients along its existing distribution channels. This seems like an easy add.

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