Timely remedy: Soul Pattinson comes to aid of Retail Foods Group with $20m
Brisbane-based Retail Food Group is raising $47.4 million in debt and equity as part of a strategy to strengthen its balance sheet and look for growth.
RFG, which owns the Gloria Jean's brand, aims for $47 million in debt and equity
The company, which owns the Brumby’s and Gloria Jean’s brands among others, said it has received firm commitments for about $25 million from institutions and sophisticated investors.
It had also entered into a binding term sheet with Washington H. Soul Pattinson for a $20 million debt facility.
Another $2.5 million would be raised via a share purchase plan.
RFG said the proceeds would be used to “reset” the balance sheet as well inorganic growth opportunities, according to executive chair Peter George.
“The company’s strong first half results demonstrate the resilient nature of the group’s brand system portfolio and validate the strategic decisions implemented throughout the company’s franchisee-first turnaround journey,” he said.
“We have carried considerable momentum in the second half and remain focused on delivering solutions to unlock growth and drive enhanced profitability for both our franchisee partners and shareholders.”
Among its growth plans was an expansion of the Gloria Jeans presence in the US as well as boosting drive-throughs within the business. An expansion of the Donut King business was also anticipated.
