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
