Long Island City-based Urbani Holdings, importer and distributor of specialty and gourmet food items in the US, has signed a Letter of Intent (LOI) to acquire Brooklyn, NY-based Mr. Mushroom Inc, a provider of specialty mushrooms.
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Mr. Mushroom generated over US$5m in FY 2001, and will bring Urbani’s pro forma revenues to over US$22m in the current fiscal year. The agreement, which is expected to close by the end of July 2002, is subject to certain conditions, including the completion of due diligence.
Urbani president Rosario Safina said: “The acquisition of Mr. Mushroom represents a major step in our expansion strategy, as it vastly increases the number of our product lines.
Urbani’s national presence will also be greatly expanded through the addition of Mr. Mushroom’s substantial base of large national retail chains. Furthermore, we expect to generate additional synergies as we cross-market these new customers, grow our revenues and reduce operating expenses for the combined companies.”
Safina continued: “We are also pleased to welcome Jeff Cai, president of Mr. Mushroom, to the Urbani management team.”
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By GlobalData“It is our goal to continue to seek out other profitable, synergistic specialty food distributors within this highly fragmented industry, particularly those companies that can expand our product mix and geographic reach among specialty supermarket retailers. The Mr. Mushroom acquisition is another step in achieving our goal of becoming the leading distributor and exclusive ‘one-stop-shop’ for restaurants, specialty food retailers and supermarkets across the US.”
