Beefy’s Pies may soon be available for franchising after an agreement was reached for the retail chain’s acquisition by listed cafe operator Retail Food Group (RFG) for $10 million.
RFG is a global food and beverage company headquartered in Queensland which owns Gloria Jean’s, Donut King, Brumby’s Bakery, Michel’s Patisserie, Crust Gourmet Pizza, Pizza Capers, Rack ’em Bones BBQ Ribs, Cafe2U and The Coffee Guy brands.
The acquisition is expected to significantly contribute to RFG’s performance with Beefy’s estimated to generate revenue of about $18 million and pre-tax earnings of $2.5 million in FY24.
“RFG is pleased to be in a position where it can look for inorganic growth opportunities. The acquisition of Beefy’s is significant not only because it is a great business that is complementary to our existing brand portfolio but because it marks the beginning of RFG’s next phase of growth,” said Matt Marshall, CEO at RFG.
“Joining the RFG network will help Beefy’s take the next step in its growth journey as we will become part of a team with many decades of retail experience, as well as benefit from being in a group with a larger balance sheet and access to support functions,” said Mark Hobbs, Beefy’s founder and CFO.
RFG clarified that there will be no immediate changes to Beefy’s team, supply partnerships and operations, and Hobbs will continue in an advisory role during the first year to aid the transition.
Beefy’s has nine stores across Queensland and a manufacturing facility on Sunshine Coast employing 180 people.
Meanwhile, RFG agreed to a $20 million facility B senior debt extension to increase its debt facility, with $5 million to be drawn for the acquisition and the remainder reserved for further growth opportunities.
