Retail Food Group acquisition of La Porchetta collapses
Australia’s largest multi-brand retail food franchisor and leading wholesale coffee roaster, Retail Food Group Limited (RFG) has announced that a deal to acquire the 70 outlet La Porchetta casual dining franchised Brand System has collapsed.
Australian Food News reported in September 2014 that RFG had announced its entry into a Share Purchase Agreement (SPA) to acquire La Porchetta. The SPA was subject to a number of conditions, including satisfactory completion of the Company’s due diligence investigations.
RFG has advised that the foregoing condition has not been satisfied, and as a consequence, the SPA has been terminated.
RFG owns the Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s cafe, Esquires, The Coffee Guy, Cafe2U, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza franchise systems. In addition, the Company is a significant wholesale coffee roaster, supplying existing Brand Systems and third party accounts under the Evolution Coffee Roasters Group, Caffee Coffee, Roasted Addiqtion and Barista’s Choice coffee brands. Australian Food News reported in October 2014 that RFG had announced its entry into a Share Purchase Agreement to acquire Gloria Jean’s Coffees, with settlement of that transaction anticipated in December 2014.
Australian Food News reported in September 2014 that RFG had announced a record Net Profit After Tax (NPAT) of $36.9 million for the 2014 financial year, an increase of 15.2 per cent. The record profit was supplemented by the acquisition of mobile coffee franchise brand system Cafe2U.
Notwithstanding the foregoing, RFG said it was presently engaging with the La Porchetta vendors in connection with those matters which have influenced the outcome of the due diligence investigations. RFG said it would keep the market advised of any future developments in this respect.