Smh:
Ice cream retailer Allied Brands Ltd will buy biscuit and coffee franchise Cookie Man Pty Ltd for $5.83 million.
Allied Brands said it had agreed to acquire the company through 2.5 million shares at 33 cents a share and the payment of $5 million in cash.
Another $700,000 will be released to the vendors dependent on Cookie Man’s performance, a company statement said.
Cookie Man has 46 franchises in large shopping centres in Australia, and one in Singapore. Its flagship stores operate in Myer and David Jones.
Allied Brands, which oversees the Baskin-Robbins franchise across Australia, said Cookie Man was well positioned for growth.
“The outlets are primarily kiosks in major shopping centres and, as the brand has not reached saturation point in store numbers it is well positioned for growth,” the company said.
Allied Brands said it hoped to offer co-branding opportunities, if approved by Baskin Robbins’ head franchisor.
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