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Retail Food spends $4M to buy NZ coffee group Evolution
Australia’s Retail Food spends $4M to buy NZ coffee group Evolution
By Paul McBeth
July 28 (BusinessDesk) – Retail Food Group, the ASX-listed food franchise that operates the Esquires Coffee Houses and Brumby’s Bakeries brands, has agreed to a $4 million deal to buy Evolution Coffee Roasters group.
The Australian food brand manager will pay cash for the Auckland-based company’s roasting facility that manufactures and distributes 170 tonnes of coffee products, securing supply for its own Esquires brand which makes up more than a third of sales. RFG will also acquire the coffee blend and syrup merchandising businesses and associated intellectual property.
“The transaction delivers upon strategic growth initiatives previously advised to the market by adding value accretive businesses,” chief executive Tony Alford said in a statement to the ASX. “It will provide RFG with its own manufacturing facility and coffee roasting capability in New Zealand, thus complementing the company’s recent acquisition of the Esquires Coffee Hose assets.”
The 10-year old New Zealand business names Andrew, Donald and Patricia Brodie as directors and shareholders.
The deal is subject to due diligence, and is expected to be completed by Sept. 1.
RFG said the price represents an earnings value multiple of about four times, and will be paid for from existing cash reserves.
The shares fell 1.2% to A$2.40 in trading on the ASX today, and have dropped 16% this year.
(BusinessDesk)
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