Fulham Shore to Acquire Franco Manca
Fulham Shore PLC said 30 March 2015 it will buy 99% of Rocca Ltd, the owner of the Franco Manca restaurant group, for about GBP 27.5 million in cash and shares.
The firm raised GBP 4.75 million in a share placing to help fund the deal as well as agreeing new credit facilities with HSBC.
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 GBP 6.2 million of the purchase price is to be paid in cash and the remaining GBP 21.3 million by issuing over 193 million shares at 11 pence each. The company raised GBP 4.75 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," David Page, Chairman of The Fulham Shore PLC, said in a statement.
