BEVERLY HILLS, Calif., Aug. 12, 2015 /PRNewswire/ -- Beverly Hills Group, Inc. (OTC PK: BHGI), is pleased to announce it has entered into an agreement to acquire a private Company with various subsidiaries having diverse operations in retail stores, wholesale distribution, construction, real estate development, banking and financial services throughout Mexico.
These established Mexican corporations for fiscal year ending December 31st, 2014 had gross sales of approximately US$ 4.75 million with roughly US$35 million in Real Estate assets. The Company currently does business with AB-InBev (Bud Light and Corona) in their different business units. The corporations to be acquired were founded as early as 2005 and others as recently as 2014, with approximately 150 full-time employees.
The acquisitions, as currently negotiated, will be determined after a thorough financial audit, legal due diligence and based on Fair Market Valuation.
The Company's retail and construction subsidiaries signed important agreements with Grupo Modelo's retail division, an AB-InBev company. The construction subsidiary is responsible for remodeling current retail stores in their efforts to change the branding of Modelorama to Corona stores, as well to build from ground up Grupo Modelo's new concept of retail stores with Bud Light brand, a much bigger convenience store than their current Modelorama / Corona model. The retail subsidiary also obtained the concession to operate the Modelorama / Corona stores, as well as owning and operating larger convenience stores under AB-InBev's (Grupo Modelo) Bud Light model.
In July 2014, the Company's financial services subsidiary launched its operations with an electronic payment system with Point of Sales (PoS) technology called Comercio ON which provides financial services to a niche retail market in Mexico with merchant services including; credit and debit card transactions, utilities, government and telecommunications payments, shipping and other services. This program is backed and supported by the Mexican State governments, Secretary of Economy and local Mexican authorities, giving us a competitive advantage.
The proposed acquisition of this Company represents the next step in Beverly Hills Group's strategy to become a leading Emerging Market Company. With the current strategy the Company can be positioned to grow into one of the leading retail providers and suppliers throughout Mexico. BHGI will continue to use mergers and acquisition as a primary tool to grow our business throughout Latin America markets.
This press release may contain a number of forward-looking statements. Words, and variations of words such as "expect," "goals," "plans," "believe," continue," "may," "will," and similar expressions are intended to identify our forward-looking statements, including but not limited to, our expectation for growth; benefits from brand-building; cost savings; growth and margins.
These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Such factors include, but are not limited to, continued volatility of, and sharp increase in, costs, pricing actions, increased competition, risks from operating internationally, continued consumer weakness, weakness in economic conditions and tax law changes.
SOURCE Beverly Hills Group Inc.