Fin24.com
2014-03-25 02:39:41 PM
Johannesburg – Famous Brands has acquired a 70% stake in the Wakaberry Frozen Yoghurt Bar business.
Established in 2011 in Durban, this brand is the brainchild of husband and wife team Ken and Michele Fourie and their business partner, David Clark.
The company currently comprises 33 franchised stores, which extend across eight provinces.
The purchase consideration falls below the threshold of a categorised transaction in terms of the Listings Requirements of the JSE Limited and will be settled from cash reserves.
The effective date of the transaction is April 1 2014.
Famous Brands CEO Kevin Hedderwick said over the past two years the food services industry has witnessed the emergence of frozen yoghurt as a robust new category in South Africa.
“This fast growing global phenomenon with its roots in the US and Europe, is quickly gaining momentum locally,” he said.
“We are delighted to have the opportunity to participate in this new and rapidly growing food services sector with a partner which has set the benchmark and still has vast expansion potential in this country.”
Hedderwick said the brand is highly sought after by landlords, and given its low set-up and running costs, is an attractive business proposition for potential franchisees.
“In the short-term, we have the ability to significantly ramp up growth of the brand across the South African landscape given our regional structures, thereby rapidly entrenching Wakaberry’s leadership position in the category,” he said.
“In the longer term, we have the capability to extend the brand into the rest of Africa region, achieving first-mover status, because of our existing structures within these markets.”
Wakaberry co-founder Michele Fourie said they received offers from a number of potential buyers, but are pleased to have selected Famous Brands, because they recognise the value that the group can add to their brand.
Famous Brands provides the proven and successful business model to make this a reality for us,” she said.
It is anticipated that by June 2014, the total network will comprise 40-plus restaurants, with further openings scheduled for the balance of the year.