Famous Brands Puts Cape Franchising On Its Plate

Business Report:

Famous Brands has entered into an agreement for the purchase of the business of Cape Franchising, successfully completing the final phase in its process of acquiring all master licenses in South Africa.

The acquisition consideration of approximately R150 million is expected to deliver a number of synergistic benefits that will be explored post the effective date of 1 March 2008 and is subject to a number of conditions precedent including that of the necessary due diligence as well as Competition Commission approval.

Kevin Hedderwick, Chief Operating Officer of Famous Brands, said the acquisition in the immediate short term will be earnings neutral, but will in the long term, unlock further value for Famous Brands and its shareholders.

Hedderwick explained that… continue reading.