Retail Food Group shareholders have approved the $163.5 million takeover of Gloria Jean’s coffee shops.
Gloria Jeans, founded in Chicago in 1979, has 800 franchised outlets across 40 countries, including 450 in the US.
The shareholders meeting today also approved a $30 million takeover of the 12-year of Brisbane coffee roaster Di Bella.
Cafes and restaurants are having a comeback after subdued business due to low consumer confidence. The latest official retail trade numbers show a 3.6% rise in January compared to an overall rise of just 0.4%.
Retail Food Group’s brands include Michel’s Patisserie, Donut King, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza Bar franchise systems.
Of the $163.5 million purchase price, $153.5 million will be paid in cash and $10 million in shares. There’s a further $16.4 million conditional upon milestones and earn-out achievements.
Retail Food Group’s shares were trading firmer at $7.50.