RFG reacquires Brumby’s master franchise territories for WA, NT

Posted by Editorial on 7th January 2010

ASX-listed retail food brand manager and franchisor Retail Food Group (RFG) is set to reacquire the Brumby’s Bakeries master franchise territories for Western Australia and the Northern Territory just over a month after purchasing the North Queensland and New Zealand master franchise territories.

“The combined Brumby’s WA and NT master franchise territories achieve the highest average weekly sales in Australia,” RFG CEO Tony Alford commented, “and, except for the relatively small Brumby’s South Australian master franchise territory (18 outlets), the completion of these two acquisitions will result in RFG having re-acquired all Australian or New Zealand master franchise and licence rights for each of the Company’s four proprietary franchise systems.”

“The transaction will deliver to RFG, the equivalent in terms of EBIT contribution of an additional 32 new Brumby’s Bakeries outlets,” Mr Alford advised.

There are currently 50 Brumby’s outlets in WA and 8 in the Northern Territory.

The cost of the transactions was not disclosed, although the company said it would be funded by a mixture of RFG scrip and cash.

RFG also took the opportunity to report on progress of two recent acquisitions – DCM Coffee & Donuts and Big Dad’s Pies. Settlement of the DCM deal is planned for next week, the company said, while they are still carrying out due diligence investigations in respect to the Big Dad’s Pies purchase.