Sports drinks company ChampionLyte Holdings has announced that it has signed a definitive agreement for the acquisition of Cargo Connection Logistics Corp. and Mid-Coast Management, Inc., two privately-held, New York-based transportation/logistics companies, with a combined turnover of US$18m.

As part of the agreement, an institutional investor has raised US$1m for the company, which will be used as working capital for Cargo Connection Logistics Corp. and to liquidate part of ChampionLyte Holdings' current outstanding debt. Miami-based Knightsbridge Capital acted as exclusive financial advisor to ChampionLyte Holdings.

"For the past two years we have committed significant resources to resurrect a beverage company that was on the brink of collapse," said David Goldberg, president of ChampionLyte.

"Despite all of these efforts and what we still firmly believe is an excellent product, we could not make the inroads necessary to be a viable player in the beverage industry. As a result, we recently engaged Knightsbridge Capital to explore several strategic merger options that would have a positive impact on the valuation of our company. Our board believes that the acquisition of Cargo Connection and Mid-Coast provides us with an outstanding opportunity to provide real value for our shareholders in a mature, multi-billion dollar industry with a company that has a seasoned management team with ambitious, yet pragmatic, growth plans."