Retail Food Group (RFG) has announced its deal to acquire 70 La Porchetta restaurants has been terminated.
The food conglomerate announced its intention to acquire the La Porchetta chain, as well as mobile coffee chain Cafe2U, at the end of August, after posting a net profit of $36.9 million for the 2013-14 financial year and a 10.1% jump in revenue to $128.8 million.
While the purchase price for La Porchetta was not disclosed, RFG said it would purchase both chains for a combined $31 million.
In an announcement to the Australian Securities Exchange this afternoon, RFG said the share purchase agreement (SPA) for the La Porchetta deal has been terminated but discussions are continuing.
“The SPA was subject to a number of conditions, including satisfactory completion of the company’s due diligence investigations,” said RFG.
“RFG advises that the foregoing condition has been satisfied, and as a consequence, the SPA has been terminated.”
“Notwithstanding the forgoing, RRG is presenting engaging with the La Porchetta vendors in connection with those matters which have influenced the above outcome, and will keep the market advised of any future developments.”
A spokesperson for RFG declined to comment further on the termination of the deal when contacted by SmartCompany. However, the spokesperson confirmed the acquisition of Cafe2U has been completed.
“The acquisition of Cafe2U was settled on 11 September 2014 and the brand system is now under RFG’s stewardship,” the spokesperson says.
Along with Cafe2U, RFG owns the Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s café, Esquires, The Coffee Guy, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza franchise networks.
Last month RFG announced it had entered into an agreement to purchase Australian-based international coffee chain Gloria Jean’s for $163.5 million. The deal, which will see RFG take on 800 Gloria Jean’s franchises in 40 countries, is expected to be completed in December.