Easton Pharmaceuticals Inc. (OTCMKTS:EAPH) has announced that they have signed an agreement for the acquisition of a commercial bakery. The current revenue and projections for the 12 months will go beyond $20 million.
Acquisition of commercial bakery
The company is currently diversifying its business, and they are looking at other lucrative segments that can add value to their business to attain consistent growth in sales. Considering their revenue-generating contract and the pharmaceutical division the company has entered into an agreement that will see it acquire a commercial bakery and food processing company in Toronto. The retail bakery produces white labelled products for its commercial line as well as for third parties which are offered in grocery stores and also in coffee chains.
The commercial bakery has a research and development division responsible for product development, and it is currently in discussions with various cannabis producers that are licensed as well as other food chains for them to develop and distribute edible cannabis products.
Expansion opportunities motivated the acquisition
The management of Easton Pharmaceuticals saw the opportunity to acquire the commercial bakery based on their track record. Equally, Easton was attracted by the expansion opportunities presented by the acquisition which will enable them to grow their sales to approximately $50 million annually. Easton’s management plans to implement some structural changes in the company that will see their revenue increase to more than $20 million this year.
Evan Karras, the CEO of Easton indicated that he was delighted for the company to have signed the acquisition agreement which will see them integrate one of the most successive commercial bakery and food processing company to their business. Evan indicated that they would leverage the market knowledge of the bakery and use Easton’s infrastructure and expertise to grow their sales.
The transaction will get finalized in the next two weeks, and Easton is ready with their legal counsel to close the agreement, and they have already begun the strategic transition plan. Details of the transaction will be available once the deal gets finalized.