New Age Beverages Corporation has signed a definitive agreement to acquire Morinda  for $85m.

Of the total, $75m will be paid in cash and $10m will be provided through New Age restricted stock based on a 40-day volume-weighted average price from closing.

New Age will pay the cash component of the deal from its cash balance.

Post completion of the deal, the merged entity will have a net revenue of a $300m, comprising $200m in assets, $40m in cash and working capital, and $20m in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).

Morinda sells its products in more than 60 countries and its direct-to-consumer and online businesses have a network of more than 160,000 distributors worldwide. It has manufacturing plants in Tahiti, Germany, Japan, the US and China.

The acquisition will allow New Age to increase the footprint of its health sciences products and cannabidiol (CBD) infused beverages.

“New Age adds significant scale and infrastructure to accelerate growth, especially of its CBD-infused beverages.”

Morinda’s CEO Kerry Asay said:  “When we envisioned what we could achieve with New Age’s portfolio through our system, we knew how transformative it could be for all our employees and independent distributors around the world”

More than 90% of Morinda’s sales are driven by Tahitian Noni-Juice and the majority of its revenues come from China, Japan, the US and Germany.  In China, the company has ten offices in ten provinces with more than 20% growth every year.

New Age’s CEO Brent Willis said: “This merger is excellent for both Morinda and New Age. Morinda adds New Age’s portfolio of healthy beverages to its network to drive further growth alongside its lead brand, Tahitian Noni.

“New Age adds significant scale and infrastructure to accelerate growth, especially of its CBD-infused beverages and Health Sciences portfolio. It is exciting to lead this company that has grown from $2m to more than $300m in two-and-a-half years.”

Headquartered in Denver, Colorado, the merged entity will have major operations in US, Germany, Japan, China and more than 20 other countries. The deal is expected to complete in late December.

On completion, Morinda will bring atleast $25m as working capital.  Morinda’s owners may be paid further contingent consideration based on the EBITDA performance next year.