Asian Grocer Leverages Outbreak Opportunity
Fast-growing Asian supermarket chain iFresh has made a key move to position itself as an innovator during the COVID-19 outbreak.
The grocer has entered into an agreement to acquire 70% of equity interests in Xiamen DL Medical Technology Co. Ltd., a company specializing in the technology, manufacturing and distribution of medical and non-medical protective masks and other related goods.
Pursuant to the terms of the purchase agreement, the company shall pay Xiamen DL $600,000 in cash and issue 900,000 shares of common stock of the company in consideration for the 70% equity interests in Xiamen DL. The closing of the acquisition is subject to customary terms and conditions as set forth in the agreement.
“This acquisition is a major step forward in broadening our business into a new market," said Long Deng, CEO and chairman of iFresh. "Our board of directors have been extremely supportive of the transaction given the current COVID-19 outbreak and the surging demand of medical products. Xiamen DL has been producing 400,000 pieces of medical and non-medical masks daily using their maximum production capacity to meet local demands as well as global orders. iFresh’s commitment to serve the community as a leading grocery supermarket chain has allowed us to be innovative in not only providing our residents with their daily life needs, but also necessary supplies during the current coronavirus pandemic. We believe the acquisition of Xiamen DL will enhance our product offering range and will drive long-term growth opportunities for our shareholders.”
Last week, iFresh hosted a giveaway in which every customer who presented a Medicare card in-store received a free mask. In addition, iFresh is giving out two medical masks per day to each of its employees (1,000 plus) and is requiring employees to wear masks throughout the day to reduce the chance of infection.
The grocery chain is headquartered in Long Island City, N.Y., and is a leading Asian American grocery supermarket chain and online grocer on the east coast of the United States, with more than 10 stores.