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Johannesburg - Famous Brands [JSE:FBR] has entered into a joint venture agreement with the founder-owners of steakhouse Turn 'n Tender‚ it said on Monday.
The JV is in line with the group's strategic intent to extend its presence in the casual dining sector.
Turn'n Tender is a family steakhouse restaurant group started in 1977 by the four Aaron brothers‚ Mervyn‚ Steven‚ Howard and Brian‚ and re-launched in 2007 By Brian and property developer and businessman Farrel Osher.
It has restaurants in Parktown Quarter in Parktown North‚ in the Thrupps Centre in Illovo‚ Nicolway Centre in Bryanston and Camaro View Centre in Bassonia.
In terms of this transaction‚ Famous Brands will acquire a 51% stake in the trademarks and existing franchise agreements in the business‚ which currently comprises the four successful steakhouse restaurants and a choice-cuts butchery all situated in the greater Johannesburg area.
Two of the original founders‚ Brian and Mervyn Aaron will be retained to assist the group in achieving Turn 'n Tender's full potential in a rapidly growing market segment.
The purchase consideration is not material and will be settled from cash reserves. Pending the successful conclusion of a due diligence exercise‚ the effective date of the transaction is 1 May 2013.
In the immediate term‚ the intention is to fast-track Turn 'n Tender's roll-out with the opening of a fifth restaurant in the sought-after Village View Centre in Bedfordview later this month. Management anticipates that the brand will achieve a national footprint of 25 restaurants over the next five years.
Famous Brands CEO‚ Kevin Hedderwick said: “For some time now we have been exploring investment opportunities in the family dining steakhouse category. Two factors appealed to us: firstly‚ this segment has seen strong growth and should continue to do so‚ and furthermore‚ we believe there is potential to build a new niche for Turn 'n Tender within the sector given the discernible ‘gap’ between the entry level mass market offering and the premium upper-end offerings.”
“We are confident that this business will realise the founding partners' dream to see the Turn 'n Tender brand in major cities across South Africa over the next few years‚” said Hedderwick.
