RFG: entered agreement to acquire Michel´s Patisserie

Southport / AU. (beu / rfg) A wave of consolidation is sweeping the bakery and cafe sectors Down Under, making unlikely friends of doughnuts and baguettes. Australian Retail Food Group Limited (RFG), the franchisor for Donut King and BB´s cafes, now agreed to buy Michel s Group, the owner of the Michel s Patisserie franchise network, for a possible 88 million AUD in cash and scrip. The deal, coming in the same week RFG tied up the purchase of Brumby´s Bakeries for 46 million AUD, marks a big expansion for RFG since it listed in June 2006. It will have swelled from 325 Donut King and BB´s cafes outlets to overseeing more than 1.020 stores nationwide. Before factoring in synergies and cost savings, RFG reckons the deal will add 20 million AUD to its earnings for the 2008 financial year, a 167 percent mark-up on the previous year.
Read more: https://www.rfg.com.au/rfg/pdfs/20070907_RFG_TMGA_Media%20Release.pdf