Retail Food Group, the franchisor of brands such as Michel’s Patisserie, Donut King and Crust Gourmet Pizza, has picked out a high profile brand for its latest acquisition.

RFG is in the process of acquiring the Gloria Jean’s Coffees’ business for $163.5m. The purchases includes the global intellectual property rights for Gloria Jean’s and US brand It’s A Grind, operational management of Australian and US regions, the franchisor of 40 licences international territories, and coffee roasting facilities.

There are 358 domestic Gloria Jean’s franchise outlets and 87 outlets of GJC and brand system It’s A Grind in the US.

RFG CEO Tony Alford described the opportunity as “compelling” and said Gloria Jean’s had been a long term target for the acquisitive multi-brand company.

“Gloria Jean’s Coffees genuinely transforms RFG into a global franchising powerhouse, driving outlet network population to circa 2,400, and providing the company with access to numerous international markets and new revenue platforms,” he said.

The deal will add weight to RFG’s existing coffee roasting business and also opens up a new market, the in-home coffee experience, through a patented capsule delivery system supplied through a national supermarket.

Management team

To ensure a smooth transition GJC executive chairman Nabi Saleh will remain with the business for at least two years. The senior management team will also join RFG.

Sabeh said “We have long known that Gloria Jean’s Coffees has extraordinary potential for growth but we couldn’t have been more impressed by how quickly RFG recognised this potential.”

Earlier this year GJC was set for acquisition by Singapore based firm but the deal collapsed.

The RFG transaction is set for a December completion.