RFG announces acquisition, reaffirms guidance
Australian retail food brand manager and franchisor Retail Food Group today announced that an agreement to acquire the Big Dad’s Pies franchise system.
Big Dad’s Pies brings to four the number of acquisition transactions announced by the ASX-listed firm in the past month.
“The Big Dad’s Pies franchise system comprises 37 South East Queensland based outlets renowned for their specialty pies produced fresh daily,” Retail Food Group CEO Tony Alford said. “The menu offer is complemented by various other quality products synergistic with those of the Company’s existing Brumby’s Bakeries franchise system.
“Big Dad’s Pies will be aligned to, and be developed under the umbrella of, the Brumby’s system and represents a further opportunity to add a successful, value accretive business capable of providing additional scale, revenues, synergies and intellectual property expansion to the Company’s retail food franchise system portfolio.”
Mr Alford said the purchase would assist the company with plans to expand their network in non-traditional site locations.
The deal is expected to be completed by February 28, 2010, but the cost was not disclosed.
RFG added that they were making progress with their other recent acquisitions which, while small, are expected by the company to have a material impact on profit.
“Whilst the four acquisitive transactions announced by the Company over the past month are individually small, together they represent an immediate 2H10 EBIT contribution for RFG and importantly for the Company, a further platform for additional scale and increased shareholder value,” Mr Alford said.
RFG reaffirmed that first-half profit would be between 10 and 15% higher than last year ($11.05 million), with their audited results likely to be released in late-February.