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Spur Corporation is to expand its restaurant portfolio with the acquisition of a 51% stake in the fast-growing franchise restaurant group Nikos Coalgrill Greek, according to a statement issued on Thursday.
Nikos Coalgrill Greek currently operates six franchised restaurants, with a further four outlets confirmed to open in the coming months. The first opened in Durban North in March 2017, with two more recent outlets opening in Sandton and Randpark Ridge in April 2018. The others are in Ballito, Fourways and Pretoria East.
Spur Corporation CEO Pierre van Tonder said he believed the Nikos Coalgrill brand had the potential to expand to around 50 restaurants nationally "over the next few years".
"We are pleased to be able to retain the services and expertise of the founders who are passionate about the Nikos brand and traditional Greek food," he said.
"As a multi-brand restaurant franchisor, we are experienced in acquiring and expanding niche restaurant concepts. Our most recent acquisition, RocoMamas, has grown from five outlets when we bought the business in 2015 to a national footprint of 64 restaurants with a further six outside South Africa."
Spur Corporation will acquire the 51% shareholding from the founding family members, Peter, Nicolette and Nicholas Triandafillou and Pano Economou, who will retain the balance of the shareholding and continue to manage the business with the support of the Spur group’s franchising expertise, the statement said.
The purchase consideration will be calculated based on a five-time earnings multiple after year three, thereafter, Spur Corporation will have an option to acquire an additional 19% shareholding.
The acquisition is subject to a due diligence evaluation and the effective date of the transaction will be 1 August 2018.
Nikos Coalgrill Greek will be the eighth restaurant brand in Spur Corporation’s portfolio, after Spur Steak Ranches, Panarottis Pizza Pasta, John Dory's, the Hussar Grill, RocoMamas, Casa Bella and Spur Grill and Go.
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