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

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news