Retail Food Group buys back Brumby's Bakeries
Teresa Ooi From: The Australian January 08, 2010 12:00AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these?
RETAIL Food Group has reacquired the master franchise for bread chain Brumby's Bakeries operating in Western Australia and the Northern Territory.
The acquisition, involving 50 outlets in WA and eight in the NT, will be funded through a mixture of RFG scrip and cash.
"The combined Brumby's WA and NT master franchise territories achieve the highest weekly sales in Australia," said RFG chief executive Tony Alford.
RFG, the Brisbane-based food franchisor and brand manager, also owns 330 Donut King outlets, 340 Michel Patisserie stores and 60 bb's cafes.
The acquisition follows a similar deal when the company recently reacquired Brumby's Bakeries master franchise for North Queensland and New Zealand.
Mr Alford said both deals would be earnings accretive with full integration to be completed within a relatively short time.
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RFG buys back Brumby's Bakeries Perth Now, 5 days ago
RFG eats up Big Dad's Pies Courier Mail, 23 Dec 2009
RFG swallows Big Dad's Pies franchise The Australian, 23 Dec 2009
Retail Food buys Big Dads Pies franchise Adelaide Now, 23 Dec 2009
Picking winners early The Australian, 8 Dec 2009
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With both acquisitions, the company would now own the master franchise for Brumby's Bakeries in the country except for 18 bb's outlets in South Australia.
The company has made a number of acquisitions recently, including the purchase of the Sydney-based DCM Coffee & Donuts and Big Dad's Pies franchise of 37 outlets in Queensland.
Mr Alford said the 23 DCM Coffee & Donuts outlets would be rebranded as Donut King, while Big Dad's Pies would operate under the Brumby's Bakeries franchise.
He said while most of the acquisitions would be funded through a mixture of cash and scrip, only Big Dad's Pies would be a cash transaction.
At the company's annual general meeting in November last year, the company said it would have a net debt of $80 million by the end of 2009 and cash reserves of about $15m.
RFG also reaffirmed its guidance that first-half net profit would increase by between 10-15 per cent this year, from $11.05m for the same period last year.
`By the end of June this year, we would have about 1160 outlets across all our brands -- up by 100," Mr Alford said.
RFG is also negotiating to sell the licence rights to Donut King in India. It sold the DK licence rights to China to Mak Brands two years ago.
RFG shares rose 9c to $2.73 yesterday.