Long Island Brand and Cullen Agricultural announce merger
Long Island Brand Beverages, the manufacturer of Long Island Iced Tea, and Cullen Agricultural Holding jointly announced that they have entered into a definitive merger agreement. The merger was spurred by favorable market and consumer trends in the US ready-to-drink market, in addition to strong brand awareness of Long Island Iced Tea, which is mainly available in grocery stores across the Northeast. According to IBISWorld, sales of ready-to-drink tea should reach $5.3 billion in 2014. The deal involves former members of Long Island Brand Beverages retaining approximately 63% of the new company, with the rest of the shares going to Cullen shareholders. It is subject to regulatory approval and expected to be finalized in early 2015.