The Retail Food Group is backing its pizza portfolio with the further acquisition of four ACT pizza and pasta outlets. The news comes as the company releases an update on the sale agreement with Crust, and reaffirms its focus on the Pizza Capers brand.
Crust acquisition
RFG has unveiled revisions to the sales and purchase agreement to acquire the Crust Gourmet Pizza Bars franchise system announced in August.
Following due diligence the terms of purchase have been revised so that the fixed consideration is now $41m and subject to performance within the 24 months following completion, the vendors are entitled to a maximum of $4m in additional payments.
The following points have also been agreed with Crust management:
- settlement before 30 october 2012
- payment of the $41m in two parts – $22m cash and shares of $3m on settlement, and $16m in cash and shares in December 2012
- immediate integration of the Crust system within RFG's existing brand structure post completion
Crust CEO Michael Logos will be RFG's QSR divisional director with responsibility for both Crust and Pizza Capers systems.
RFG Tony Alford said "the company's due diligence enquiries have not only provided further comfort regarding future Crust contribution to RFG earnings, they have validated our initial interest and motivation for the transaction itself.
"Importantly, the amendments allow Crust managment to apply a long term focus to the future of the system without further distraction."
Pizza Capers
Alford added that RFG's focus on Pizza Capers would be reasserted following the Crust transaction.
"Given the certainty now achieved in connection with the Crust acquisition, the company is no longer constricted in the execution of its growth strategy for the Pizza Capers brand system," he said.
Store acquisition
The four ACT outlets to be acquired will be rebadged as Pizza Capers stores following completion of the acquisition which is expected on 1 November 2012.
There of the outlets are vendor operated, one is franchised.
Image: crustgourmetpizza