Tuesday, March 27, 2018 11:49 AM EDT
Isodiol Acquires Florida-Based Water Company
Isodiol International Inc. (ISOL:CNX) (ISOLF) has come off its recent highs and we are monitoring the global Bioactive CBD innovator which specializes in the development of pharmaceutical and wellness products. We have been monitoring the recent pullback and remain favorable on Isodiol as the company continues to execute on its strategy and expand its reach.
Yesterday, Isodiol’s subsidiary, IsoBev, signed a definitive agreement to acquire Azure Bottling LLC, a premier water bottling facility in Florida. Azure has secured manufacturing and distribution agreements to supply water to Sysco, McArthur Dairy/Dean Foods, and Dollar General Stores throughout the United States.At full capacity, Azure can produce approx. 5.3 million bottles per month and expects this number to increase to approx. 8.58 million bottles after making improvements over the next several months.
IsoBev focuses on Isodiol’s beverage brand portfolio and will capitalize on these enterprise level companies for additional support and distribution of all beverage brands created in-house. We are favorable on this acquisitions and believe it solidifies IsoBev’s position within the CBD innovator. We expect Isodiol to recognize significant synergies from this acquisition and will monitor how the company is able to integrate the businesses.
The acquisition is an important milestone for Isodiol as the facility will create value for the beverage portfolio such as CBD and hemp waters as well as the growth potential of some of the core business initiatives. We continued to view Isodiol as an attractive opportunity and will monitor how the shares continue to trade from here.