Nascent Wine Co. (OTCBB: NCTW) announced today a Letter of Intent to acquire a Mexico based food importing and distribution company. This is the third acquisition announced in recent weeks.
Investors responded well to the news sending the shares Up 13.86% on the day with a gain of $0.14.
The firm being acquired has its own private labeled and trademarked French and Japanese food products. It currently covers 95% of the retail grocery and club stores in their Market.Nascent is on track to become the first truly nationwide distributor of imported food products into Mexico.
Upon completion of this transaction, Nascent will have nine strategically located distribution centers to include San Diego, Miami, Tijuana, Cabo San Lucas, Puerto Penasco, Monterey, Mexico City, Guadalajara, and Cancun. This network infrastructure will allow Nascent to service all of the major metropolitan areas in Mexico.
The Company is planning to continue to acquire key food service distributors in the highly fragmented Mexican food service Industry. It is an industry that currently is dispersed among 25,000 regional and “Mom and Pop” providers.
Nascent plans to achieve economies of scale with streamlined operations. With each new acquisition, Nascent plans to consolidate their operations into its existing facilities, thereby realizing the full business benefits of a consolidation.