DDC Enterprise Limited (NYSE: DDC) witnessed a notable recovery in its stock performance during the after-market session on Tuesday, demonstrating a 9.37% increase to reach $3.15. This positive momentum partially offset the 11.38% loss experienced in the regular session, concluding at $2.88. While the surge in DDC Enterprise stock occurred in the absence of immediate news, a closer examination of recent developments provides a more comprehensive insight into its market behavior.
DDC Enterprise (DDC) recently delivered a comprehensive corporate update. DayDayCook successfully completed its initial public offering on NYSE American, securing $33.15 million in new funding. The company is actively executing its Mergers and Acquisitions (“M&A”) strategy, with a primary focus on acquiring complementary brands in the Asian food and cooking categories, as well as gaining access to diverse sales channels.
One significant acquisition was the completion of Cook San Francisco, LLC, an Asian food brand company based in San Francisco, USA. This company specializes in offering RTC Asian noodle meal kits and a variety of soup bases through an established distribution network in the United States, including prominent retailers such as Whole Foods Market, Target, and Kroger.
Additionally, DayDayCook finalized the acquisition of Shanghai Yuli Development Limited (“Yuli”), a Chinese company primarily engaged in the sales of RTC and RTE product gift boxes. Another strategic acquisition was Yai’s Thai, a provider of Thai-based pantry staples in the U.S. market, encompassing products like curries and stir-fry sauces.
The latter’s products are available at major retailers such as Costco, Whole Foods Market, Safeway, Sprouts, and Kroger, with anticipated revenues ranging between $8 million to $10 million in 2023. Furthermore, the company entered into an agreement to acquire 51% of the Italian company GLI for approximately US$9.3 million in cash over the next three years.
This deal also includes an additional potential consideration in cash and stock, contingent on GLI’s revenue and EBITDA over the specified period. GLI specializes in the production of Asian-style ready-meals and anticipates revenue of around US$11 million in 2023. As a newly listed entity, DayDayCook recognizes a substantial array of opportunities in both the U.S. and international markets, remaining steadfast in its commitment to executing its growth strategy.
