Retail Food Group is currently evaluating a number of merger and acquisition opportunities across the franchise, coffee and allied beverage, food service and manufacturing industries to add to its ever-growing portfolio.
Andre Nell, Retail Food Group managing director, told shareholders during the company’s annual meeting the group is currently evaluating 50 businesses and 12 of those opportunities are the “subject of active engagement”.
The owner of brands including Donut King, Gloria Jean’s Coffees and Crust Gourmet Pizza, will increase its debt by $40 million.
“RFG is enthused about the overabundance of M&A opportunity now under consideration and what that might mean for the company’s future prospects,” Nell said.
The group said it is also looking at food franchise and coffee-related opportunities across Australia. RFG have also been granted master franchise licenses across Europe, the Middle East and the APAC region, which Nell said would contribute over 50 per cent of new outlet commissions in the first half of FY17.
Nell reaffirmed its FY17 guidance of 20 per cent underlying NPAT growth excluding acquisition and integrated costs.
“That growth will be weighted as to c.54 per cent to the 2H17, reflecting the impact of 1H17 acquisitive activity, together with the timing and realisation of international growth initiatives,” he said.
