Charlie's squeezes out $10m for Phoenix

Charlie's has bought fellow juice company Phoenix Organics for $10 million.

Charlie's will own Phoenix's range of organic juices and sparkling drinks as well as its West Auckland manufacturing and warehousing facility.

The $10 million will be paid in cash in two instalments, the first, of $8 million, on December 29 and the rest on February 28.

The purchase will be financed from the company's resources, including calling on its recently announced equity loan facility and a placement of $3.5 million of shares.

Charlie's will gain access to Phoenix's route distribution system, which caters to more than 3500 cafes and high-end retail outlets in New Zealand and Australia.

Charlie's chief executive, Stefan Lepionka, said the company had been clear that its recent listing on the stock exchange was partly in order to raise funds for potential acquisitions.

- NZPA