- Release Date: 05/11/14 08:34
- Summary: ASSET: RBD: Purchase of Carl's Jr. Stores and Sublicensing Agreement
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RBD 05/11/2014 08:34 ASSET REL: 0834 HRS Restaurant Brands New Zealand Limited ASSET: RBD: Purchase of Carl's Jr. Stores and Sublicensing Agreement NZX 5 November 2014 RESTAURANT BRANDS ACQUIRES SEVEN CARL'S JR STORES & ENTERS INTO MASTER LICENSING AGREEMENT WITH FRANCHISOR Restaurant Brands has signed a conditional agreement to acquire the seven Carl's Jr. stores in Auckland currently owned and operated by Forsgren NZ Ltd. This will bring the total number of Carl's Jr. stores in New Zealand owned by Restaurant Brands NZ Limited to 16, resulting in the company being the sole operator in the New Zealand market. The agreement is for a cash purchase of the seven stores, by way of an asset acquisition, for a total consideration of $10.5 million (plus a payment for stock). Restaurant Brands will offer employment to the existing Forsgren employees. The acquisition is subject to a number of conditions (including approval of CKE Restaurants Holdings, Inc. (CKE), the Carl's Jr franchisor, and assignment of leases). Settlement is expected to occur in mid-November. Restaurant Brands sees the acquisition as a strategic opportunity to add critical mass to its Carl's Jr. chain and use volume to further leverage marketing and supply chain opportunities. Restaurant Brands has also signed a Master Licensing Agreement with CKE which allows Restaurant Brands to sublicense Carl's Jr. stores in New Zealand to third party franchisees. The agreement, which is effective immediately, allows Restaurant Brands to more quickly increase market penetration. Licensing smaller franchisees to operate the Carl's Jr. brand in locations where they can operate the business effectively will allow more rapid expansion of the Carl's Jr. store network. It is envisaged the model will work in much the same way as the successful mixed ownership model Restaurant Brands has set up with its other brands. Restaurant Brands will receive a share of royalties and fees in return for the development and ongoing supervision of sublicensed stores. For further information please contact: Grant Ellis Russel Creedy CFO/Company Secretary CEO Phone: 525 8710 Phone: 525 8710 Ends End CA:00257242 For:RBD Type:ASSET Time:2014-11-05 08:34:28
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- Ann: ASSET: RBD: Purchase of Carl's Jr. Stores and Sublicensing Agreement
Ann: ASSET: RBD: Purchase of Carl's Jr. Stores and Sublicensing Agreement
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