Retail Food Group (RFG) is acquiring boutique coffee franchise Cibo Espresso from Retail Zoo for $2.7 million.

The acquisition, which includes Cibo Espresso’s intellectual property, is intended to accelerate RFG’s growth in South Australia.

Founded 23 years ago, Cibo Espresso now has 22 retail locations including four company-owned outlets.

RFG expects to invest about $1.3 million into Cibo Espresso’s network to provide incentives to the coffee shop’s franchise partners to accelerate their transition to Gloria Jean’s.

“This acquisition aligns perfectly with our strategic goal to grow our core brands in the cafe, coffee, bakery channel and is an important step to deliver Gloria Jean’s bold ambition to become the most visited beverage destination in the world,” said Matt Marshall, RFG CEO.

The transaction is expected to be completed in the middle of the current fiscal year.