What's Happening?
Cizzle Brands Corporation has completed the acquisition of Flow Water Inc.'s co-manufacturing business for approximately $83.75 million. This strategic move allows Cizzle to focus on scaling Flow's profitable co-manufacturing operations. The acquisition was funded through a comprehensive financing package, including a senior secured credit facility from Orion Infrastructure Capital and a vendor take-back loan. The transaction is expected to significantly enhance Cizzle's revenue base, with projections of $21.5 million in revenue for the second half of fiscal 2026 and $46.5 million for fiscal 2027. The acquisition aligns with Cizzle's strategy to become EBITDA-positive and cash-flow positive, while securing in-house manufacturing capacity for its
CWENCH Hydration brand.
Why It's Important?
This acquisition marks a pivotal moment for Cizzle Brands, as it accelerates the company's path to profitability and strengthens its operational platform. By acquiring Flow's manufacturing business, Cizzle gains control over a critical part of its value chain, enhancing production efficiency and cost management. The deal is expected to create operational synergies, including procurement efficiencies and expanded manufacturing flexibility. This move positions Cizzle as a leader in sustainable and eco-friendly packaging, addressing the growing demand for environmentally conscious products. The acquisition also reflects broader trends in the beverage industry, where companies are increasingly focusing on sustainability and operational efficiency.
