File photo: Ross Jansen/INLSA

JOHANNESBURG - Steakhouse franchise restaurant chain Spur Corporation said on Thursday it would expand its restaurant portfolio with the acquisition of a 51 percent stake in fast-growing Nikos Coalgrill Greek.

It said the acquisition was subject to a due diligence evaluation and would be effective on August 1.

Spur would acquire the shareholding from founding family members Peter, Nicolette and Nicholas Triandafillou and Pano Economou, who would retain the balance of the shareholding and continue to manage the business with the support of the group’s franchising expertise.

"The purchase consideration will be calculated based on a five-times earnings multiple after year three," it said. "Spur Corporation will have an option to acquire an additional 19 percent shareholding after three years."

Nikos Coalgrill Greek currently operates six franchised restaurants, with a further four outlets confirmed to open in the coming months.

The Nikos Coalgrill Greek brand had the potential to expand to around 50 restaurants nationally over the next few years, Spur CEO Pierre van Tonder said.

Spur's most recent acquisition, RocoMamas, has grown from five outlets when it bought the business in 2015 to a national footprint of 64 restaurants with a further six outside South Africa.

Nikos Coalgrill Greek will be the eighth restaurant brand in Spur's portfolio after Spur Steak Ranches, Panarottis Pizza Pasta, John Dory’s, The Hussar Grill, RocoMamas, Casa Bella and Spur Grill And Go.

- African News Agency (ANA)