Retail Zoo’s brands include Boost Juice Bars, Salsa’s Fresh Mex Grill, Cibo Espresso and Hatch Chicken Shop, with 294 stores operating in Australia, and 100 international stores in nine countries, and will generate an estimated $A260 million in network sales in FY2014 (June), and has a record of strong and consistent sales and EBITDA growth.
Financial terms of the acquisition remain confidential.
Previously owned by The Riverside Company, which had a majority shareholding, the business founders, Jeff and Janine Allis, will remain heavily invested, and along with CEO Scott Meneilly, continue to manage business operations.
Retail Zoo will now be indirectly owned by the founders, and funds advised by an affiliate of Bain Capital.
For Bain Capital, Retail Zoo represents its second major investment in Australia after acquiring MYOB in 2011. Bain Capital will support Retail Zoo’s growth opportunities with capital, strategic and operational expertise.
Bain Capital brings global Quick Service Restaurant (QSR) experience through previous investments in Domino’s Pizza, Dunkin’ Brands, Burger King, and Bloomin’ Brands (which includes Outback Steakhouse, Fleming’s, Bonefish Grill and Carrabba’s Italian Grill).
Craig Boyce, MD Bain Capital said,“Retail Zoo is highly aligned with our Australia investment strategy – leveraging our global QSR experience and a platform for international expansion.
“We see an exciting opportunity to build on Boost’s strength as the leader in the Australian food and beverage market, with further health oriented product innovation and site expansion beyond the traditional mall locations into universities, train stations, airports, and petrol stations.
“In addition to Boost, Retail Zoo has three young, compelling concepts to grow the business, leverage the QSR platform and create further franchisee opportunities via enhancing Salsa’s offering, in the fast growing Mexican category, expanding Cibo, South Australia’s favourite coffee, into other states and developing Hatch, an innovative rotisserie chicken experience starting in Victoria,” he said.
Retail Zoo founder and executive director, Janine Allis said they had met the partner that can assist in its growth strategy.
“Since we opened our first Boost store in South Australia in 2000, the group has evolved in a number of exciting ways, so that we now have the brand represented in countries such as Malaysia, South Africa, UK, and Singapore through master partner agreements with Boost International. I am sure that the next phase of evolution will be just as exciting,” she said.
Retail Zoo CEO, Meneilly said, the company’s strength is built on its entrepreneurial culture, and its ability to anticipate market opportunities, execute roll out plans and protect and nurture its brands.