Spur to buy 60% stake in Cappuccino's
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Franchise restaurant group Spur Corporation (SUR) announced on Monday that it would acquire a 60% stake in Cappuccino's, the cafe and pizzeria restaurant franchise, for about 25 million rand in cash.
Pierre van Tonder, Spur Corporation's managing director, said the acquisition would allow Spur to fast-track the expansion of Cappuccino's into a national chain.
“Cappuccino's will complement our portfolio of restaurant brands, namely Spur Steak Ranches, Panarottis Pizza Pasta and John Dory's Fish & Grill,” he said.
Spur will acquire 60% of the Cappuccino's franchise company and distribution centre, which is based in Pretoria, and the remaining 40% will be held by the Cappuccino's co-founders, Nic Nicolakakis and Niki Callis, who will continue to fulfil an executive function within the business.
Cappuccino's operates 15 franchise restaurants, with the majority of the outlets being in Gauteng.
The first Cappuccino's outlet was opened in the Menlyn Park Shopping Centre in Pretoria in 2000 and the latest restaurant opened in the Mall of the North in Polokwane in April this year.
Spur said the transaction was subject to a due diligence process and the effective date was expected to be October 1. - I-Net Bridge