US-based developer of functional beverages Kona Gold Solutions has signed a letter of intent (LOI) to acquire Florida based Flo Beverages.

Financial details are yet to be disclosed by either company.

Kona Gold Solutions CEO Robert Clark said: “I am very excited to announce the LOI to acquire Flo Beverages, an exciting company with smart ownership and great products.

“Started by brothers Lance and Evan Adler, Flo brings to Kona Gold Solutions, an exciting product line in LiKuid, a Ketogenic Energy Drink, and a team that runs a USDA organic certified facility that knows how to formulate great-tasting beverages.

“Flo operates its own production line, which brings exciting opportunities in offering co-packing for small to medium companies and producing limited seasonal runs.”

Founded in 2015, Flo Beverages has forayed into first entered the energy drink segment with the launch of its SoFlo organic energy drinks.

Flo Beverages operates a 3,000ft2 USDA certified organic co-packing facility in Longwood, Florida. It also recently launched its LiKuid, an all-organic Ketogenic Energy Drink in three different flavours distributed in Florida and Puerto Rico.

Kona Gold will be performing its due diligence over the next few weeks and expects to close the acquisition over the next 30 days.

Clark added: “In 2020, we are looking to add a new product line, an all-organic CBD energy drink.

“The acquisition of Flo Beverages provides the Company now with in-house resources to tap into. We are excited about the opportunities Flo brings to Kona Gold and the resources Kona Gold will offer Flo to build its distribution footprint with LiKuid.”