Miami, Florida, Dec. 16, 2022 (GLOBE NEWSWIRE) -- Mogul Energy International, Inc. (OTC: MGUY) today announced its acquisition of the “FLORA” group of companies (Florida Beauty Flora, Inc, Florida Beauty Express, Inc, Floral Logistics of California, Inc. and Tempest Transportation, Inc.). FLORA provides refrigerated trucking and logistics services to companies in floral, plant, food, and other industries that require specialization in time-sensitive, temperature control segments of the supply chain.
Upon the acquisition of Flora, Ronen Koubi, CEO and president of the Flora companies, became the CEO, president, and a director of MGUY. Dr. Steven Siegel, formerly CEO, President and director of MGUY has resigned.
Florida Beauty Flora was established in the mid-1980s and now along with the other Flora companies consist of floral transportation, logistic, and warehouse consolidation specialists, supplying primarily refrigerated long haul, regional and dedicated transportation, and logistical services for the floral and plant industry.
CEO Ronen Koubi stated: “This transaction will enhance the ability for FLORA to competitive refrigerated transport and logistic company throughout the United States with the ability to transport and warehouse products in strategic locations to optimize and facilitate customer orders.” Furthermore, Koubi says: “The company looks to grow its revenues from approximately $70 million in 2022 to $185 million by 2025 bringing significant value to its shareholders while increasing EBITDA from $3.6 million to $8.1 million during the same period."
MGUY acquired FLORA through a reverse triangular merger with MGUY exchanging 10,000 shares of a new class of preferred stock and 350 million shares of common stock for 100% of the Flora companies.
FLORA currently has approximately 230 trucks and 320 trailers under its management, as well as three main locations in Florida, Tennessee, and California. Florida is the bulk hub for FLORA with roughly 200,000 square feet of cold storage dedicated mostly to fresh cut flowers and produce, making it one of the largest in the Southeast region. Flora currently employs approximately 300 people in the United States and plans to double that number over the next few years. “While the merger into a public company is a tremendous first step, we look forward to becoming an industry leader trading on the NASDAQ,” says Mr. Koubi.
Mr. Koubi expects to achieve the projected revenue and profit growth through identified and targeted acquisitions, as well as creating new credit facilities to expand the fleet of trucks and warehouses. FLORA will also eliminate older trucks and trailers while refreshing its fleet with newer models and moving towards an asset-light model. Beyond a new fleet, Flora’s information technology staff will focus on the addition of automation and technology. To achieve this objective, the company will integrate new IT and software capabilities both operationally and, in the fleet, bringing cost reducing algorithms that will modernize its operations which can be used with new acquisitions to simultaneously bring new fleets online throughout the United States that will be vertically integrated eliminating down times usually associated with business combinations.
Contact:
Ronen Koubi
305-503-1200 Ext 553
