Australia-based Retail Food Group (RFG) will acquire the assets of New Zealand-based Evolution Coffee Roasters Group (ECRG) in a deal the latter expects will bolster its existing portfolio of products in the region.
According to a filing made with the Australian Stock Exchange, RFG, which is a retail food brand manager and franchisor, will acquire the business and intellectual property assets of ECRG for approximately AU$4m.
This includes ECRG's coffee roasting facility in Auckland that manufactures and distributes approximately 170 tonnes annually of coffee products on a wholesale and contract-roasting basis throughout New Zealand, Asia and the Middle East.
The facility currently also produces 60 tonnes of coffee products presently supplied to RFG’s Esquires Coffee House franchise.
“It will provide RFG with its own manufacturing facility and coffee roasting capability in New Zealand thus complimenting the company’s recent acquisition of the Esquires Coffee House assets," said RFG CEO Tony Alford.
RGF had in December last year acquired the New Zealand master franchise business for the Esquires Coffee House, which has a footprint of 46 outlets and is the largest franchised coffee chain within that country.
The acquisition will also include Roasted Addiqtion Coffee Dealers, a merchandiser of a range of proprietary coffee blends and syrups that has a customer base of 150 cafes, restaurants and supermarkets in New Zealand.
Also part of the sale will be Evil Child Beverage Co., a manufacturer of drinking chocolate powders and frappe blends, supplying cafes, restaurants and supermarkets throughout New Zealand.
The acquisition is subject to regulatory approval, and will be funded from existing cash reserves of RFG, the filing stated.