Global Beverage Solution has signed an agreement to acquire 80% of Rudy Beverage Group.

The agreement calls for the purchase of 80% of Rudy Beverage shares for 6m restricted common shares of Global Beverage in a stock-for-stock exchange, the US company said yesterday (23 November). In addition, the agreement has an earn-out provision for an additional 10m shares of Global that are subject to certain milestones being achieved by Rudy.

Richard Clark, president of Global, said: "We are extremely pleased with the addition of Rudy Beverage to our portfolio of companies."

"The Rudy line of beverages are drinks that will make a difference - a difference in two key areas, obesity and diabetes," added the co-founder of Rudy Beverage, Rudy Ruettiger. "It's about contributing to the community. It's about delivering something that's good and good for you. The Rudy line of beverages addresses a  US$8bn market. I want 0.5-1% of that market in my first year. That's US$40m-US$80m in sales if we meet our goals."

Among Rudy's drinks brands are Rudy Flying Colours, Rudy Revolution and Rudy Fortified. The company focuses primarily on beverages that are higher in nutritional value but lower in sugar than existing brands.