Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


BurgerFuel Welcomes American Investor

BURGERFUEL WORLDWIDE PRESS RELEASE

Tuesday 14th January, 2014

BurgerFuel Welcomes American Investor

BurgerFuel Worldwide (BFW) has signed an agreement with US company, Franchise Brands, LLC (FB), who will join BFW as a shareholder and franchise advisor. FB was created in 2005 with the support and guidance of the founders of SUBWAY® restaurants, Fred DeLuca and Dr. Peter Buck, in order to invest in and offer guidance to small and mid-market companies with experienced management that are seeking to expand their businesses. SUBWAY® restaurants is the largest single brand restaurant chain in the world with over 40,000 franchised stores in more than 100 countries.

BFW and FB have also entered into an agreement in which it is intended that FB will collaborate with BFW to grow the business by providing knowledge and support as well as global development opportunities, including in the United States where BurgerFuel plans to open restaurants.

FB will buy an initial 10% stake in BFW with an option to increase its holding up to 50% over 8 years. The stock is guaranteed by Mason Roberts Holdings Limited (MRH) the largest BFW shareholder with a current holding of 80%. The initial 10% stake will comprise a $5.9M placement of new BFW shares and the purchase of $2.16M of shares from MRH. The purchase price is $1.35 per share, the trading price when discussions were first initiated in April last year. BFW confirmed the deal, including due diligence, was complete and it is anticipated that shareholder approval will occur shortly.

BFW Chairman Peter Brook said “This is extremely positive for the future of BurgerFuel. It’s an incredible opportunity for the company and very exciting for all our shareholders. Bringing on board a strategic investor with major distribution, experience and unsurpassed global reach will drive significant value for BFW over the coming years. We are delighted for all of our shareholders.”

BFW Group CEO Josef Roberts said that “This gives us the opportunity to turbo charge our business by going into the US and other countries, alongside the largest franchise company in the world. BurgerFuel will retain control over its unique brand and operating style and we will remain a publicly listed New Zealand company.”

Roberts said the agreement was negotiated directly with Lisa Oak - FB Managing Director and Vice President of Franchise World Headquarters LLC. “I met with Fred [DeLuca] and Lisa early last year, since then we’ve been working together to conclude the deal, which we are all pretty excited about. This is a major event in the history of BurgerFuel.”

BurgerFuel Founding Director Chris Mason said “Our vision and objective was always to develop the brand globally and build a big business. We want to make BurgerFuel a household name around the world like it is in New Zealand and like it’s becoming in the Middle East. We’re only just getting started”.

The deal will see BFW with cash reserves of around $9-10M. The company has no debt.

A date for the BFW Extraordinary General Meeting for shareholders to approve the deal will be notified shortly.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news