Two for One Ice Cream Franchise Consolidation
NexCen Brands announced that it has entered into definitive agreements to acquire two ice cream franchise systems; MaggieMoo’s and Marble Slab, two well known and established brands within the hand-mixed premium ice cream category. NexCen, a brand management company, is acquiring the companies for a combined initial purchase price of $37 million, plus a potential earn-out of up to $2 million upon the MaggiMoo’s acquisition. These two transactions are expected to be completed before the end of the first quarter and will mark the first acquisitions for NexCen in the quick service restaurant (QSR) sector.
Robert D’Loren, NexCen’s president and CEO, noted: “These acquisitions will provide NexCen with two well positioned brands in the hand-mixed premium ice cream franchise category. With 520 existing franchises stores and 225 stores in the pipeline on a combined basis, these two brands will place us solidly as the number one player in quality and the number two player in the number of franchise units in the hand-mixed premium ice cream sector.
“There is a tremendous growth opportunity with these brands through organic growth and franchise licensing opportunities. We intend to grow these brands outside of the US through our international franchise network currently operating in over 40 countries worldwide,” Mr D’Loren concluded.
The initial purchase price for MaggieMoo’s is $16.1 million. The Marble Slab acquisition is costing NexCen $16 million in cash, and seller notes in aggregate principal amount of $5 million that earn interest at 6% per annum and are payable one year from closing.
NexCen is a brand acquisition and management company focused on assembling a diversified portfolio of intellectual property centric companies operating in the consumer branded products and franchise industries. NexCen owns and franchises The Athlete’s Foot brand worldwide, and in December 2006 entered into an agreement to acquire the worldwide rights to Bill Blass, a designer apparel brand.
Since 1983, Marble Slab Creamery has set its standards of quality unusually high. Every batch of the super premium ice cream is homemade and hand-rolled in freshly baked waffle cones in each store. There are currently 336 stores located in 35 states, Puerto Rico, Canada and the United Arab Emirates.
Based in Columbia, Md., MaggieMoo’s currently operates 184 stores located in 36 states domestically. Each location features a menu of freshly made super-premium ice creams, mix-ins, smoothies, the country’s first ice cream cupcakes and custom ice cream cakes. MaggieMoo’s chocolate, dark chocolate, vanilla, vanilla bean and strawberry ice cream flavors all have been awarded The National Ice Cream Retailers Association’s prestigious Blue Ribbon Award, for taste, texture and overall appearance for eight years running. MaggieMoo’s is the only national retail concept to win all five awards.
For the year ended December 31, 2006, NexCen said aggregate revenues for Marble Slab and MaggieMoo’s were approximately $10 million.
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