LEADING franchisor Retail Food Group (RFG) was on the acquisition trail in an industry it believed was ripe for consolidation, the company said today.
Gold Coast-based RFG, which owns Donut King’s Australian operations, made a less than spectacular debut on the Australian Stock Exchange today, opening at 96c and falling to 88c by 1410 AEST, from its $1.00 issue price.RFG chief executive Tony Alford said the $36.5 million raised in the initial public offering (IPO) would fund acquisitions.
He said there were opportunities within the Australian retail food market to consolidate a number of franchise systems – either within the Donut King or bb’s cafe brand or stand alone as another brand.
“The retail food sector is pregnant with opportunities and is ripe for an industry consolidator,” Mr Alford said.
“We’ve been contacted by four potential vendors in the retail food franchising sector and … we will pursue those with vigour.” Mr Alford said RFG was seeking to grow organically within Australia and expand overseas.
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