Johannesburg - Franchise restaurant group Spur Corporation [JSE:SUR] said on Monday that it would acquire a 60% stake in cafe and pizzeria restaurant franchise Cappuccino's for about R25m in cash.
Pierre van Tonder, Spur Corporation's MD,
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. The remaining 40% will
be held by Cappuccino's cofounders, 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 outlets 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 2011.
Spur said the transaction was subject to a due diligence process and the effective date was expected to be October 1.