AUSTRALIA | Retail Food Group has acquired CIBO Espresso as part of the company's expansion plans, expected to be finalised next year.
Queensland-based Retail Food Group has announced the acquisition of CIBO Espresso.
Retail Food Group has signed an agreement to purchase 100 percent of the share capital of CIBO Espresso Holdings Pty, including the intellectual property for total consideration of AUD $2.7 million. The transaction will be funded by RFG cash on hand.
The company said that it expected the transaction to complete in mid FY25 and be accretive in FY26 following acquisition and conversion costs incurred in FY25.
The transaction rationale will include an enhanced presence of the brand in South Australia, which will rapidly accelerate and grow the brand to 22 retail locations, including four company owned outlets.
It will also benefit coffee supply synergy, which is expected to be realised by utilising the company’s Castle Hill roastery production capacity, and suppling beans to the CIBO Espresso stores.
CIBO Espresso is a largely franchised network, with three multi-site operators, a robust customer base and an existing team of passionate cafe operators.
Retail Food Group has been focused on coffee as a core business, and its global scale has driven benefits for franchise partners alongside expansion of products upon conversion to Gloria Jean’s with a broad cold beverage offer. Acai has an immediate opportunity to drive network sales growth. Franchise Partners will also benefit from a larger marketing fund upon conversion. Network sales growth in a core brand can be immediately leveraged in support functions.
Retail Food Group CEO, Matt Marshall said the acquisition has supported the company’s vision to expand its portfolio across various markets.
“This acquisition aligns perfectly with our strategic goal to grow our core brands in the Café, Coffee, Bakery (CCB) channel and is an important step to deliver Gloria Jean's bold ambition to become the most visited beverage destination in the world,” said Marshall.
Retail Food Group is Australia’s largest multi-brand retail food franchise manager, and is the owner of iconic brands, including Gloria Jean’s, Donut King, Brumby’s Bakery, Beefy’s Pies and Crust Gourmet Pizza.
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