LONDON (Alliance News) - The Fulham Shore PLC Monday said it will buy 99% of Rocca Ltd, the owner of the Franco Manca restaurant group, for about GBP27.5 million in cash and shares, and it raised GBP4.75 million in a share placing to help fund the deal as well as agreeing new credit facilities with HSBC.
The Fulham Shore already owns one of the Franco Manca restaurants under a franchise agreement with Rocca Ltd. It said the performance of this encouraged the company to pursue the purchase.
Around GBP6.2 million of the purchase price is to be paid in cash and the remaining GBP21.3 million by issuing over 193 million shares at 11 pence each. The company raised GBP4.75 million via a placing at 11p per share.
"We're delighted to have agreed to acquire Franco Manca, an excellent growing business. The success to date of our franchise on Tottenham Court Road encouraged the board to pursue this acquisition. Alongside The Real Greek, we believe we are creating a portfolio of exciting and well regarded restaurant brands," Chairman David Page said in a statement.
The Fulham Shore has also agreed new credit facilities with HSBC, which provide a GBP6 million revolving credit facility and GBP0.5 million overdraft.
It said it will refinance the outstanding loan facility of GBP860,000 acquired with Kefi Ltd, and will use the new facilities to expand The Real Greek restaurant chain, fund future acquisitions and invest in its existing restaurants.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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