Coffee Holding has made a strategic acquisition by purchasing Empire Coffee Company for $800,000, which is just 60% of its market value. This deal includes Empire's Port Chester roastery and its inventory. The acquisition comes as Empire struggled to recover from the pandemic, making it an attractive target for Coffee Holding. With this purchase, Coffee Holding plans to enhance operations and boost revenue to pre-COVID levels.
• The acquisition price reflects a significant discount, valued at about $0.60 on the dollar.
• Coffee Holding will take over Empire’s operations and decision-making, aiming for immediate cost savings.
• A new subsidiary, Second Empire, was formed to manage the acquisition.
• Coffee Holding has a diverse portfolio, including several retail coffee brands and a green coffee trading company.
This acquisition is important as it allows Coffee Holding to expand its manufacturing capabilities while potentially revitalizing Empire’s operations. It highlights the opportunities available in the market for companies that can adapt and grow post-pandemic. By leveraging its experience, Coffee Holding aims to turn around Empire's fortunes, benefiting both companies in the long run.
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