Aquisition of 60% Interest in Doppio Group
Spur Corporation Limited
Incorporated in the Republic of South
Africa
Registration number: 1998/000828/06
Share code: SUR
ISIN: ZAE 000022653
(“Spur Corporation” or “the group”)
SPUR CORPORATION STRENGTHENS POSITION IN DAY-TIME SPECIALITY
DINING AND ENTERS COFFEE SPECIALITY MARKET WITH ACQUISITION OF 60%
OF THE DOPPIO GROUP
Spur Corporation is to acquire a 60% interest in the restaurant brands Doppio Zero, Piza
e Vino and Modern Tailors, with a portfolio of 37 franchised and company-owned
restaurants, as well as Doppio’s bakery and central supply business (“the Doppio Group”).
The interest in the Doppio Group is being acquired from founders and shareholders, Paul
Christie and Miki Milovanovic (“the Founders”).
Spur Corporation’s strategy is to expand into categories, markets and channels where it
is not fully represented. The group’s speciality dining portfolio currently comprises 40
restaurants across The Hussar Grill, Nikos and Casa Bella brands with dinner trade
representing about 71% of speciality turnover. The Doppio Group will nearly double the
Spur Corporation speciality portfolio and enable the group to substantially increase its
share of the speciality day-time dining market.
Doppio Zero has extensive expertise in the bakery and coffee speciality market and offers
a bespoke day and evening dining experience. Piza e Vino complements the group’s
Italian offering provided by Panarottis (78 restaurants) and Casa Bella (6 restaurants).
As the Doppio Group operates predominantly in Gauteng, with only 4 of the restaurants
located outside the province, the transaction creates an opportunity for the group’s
franchisees to invest and expand their brand portfolios nationally, particularly with Doppio
Zero, which is the most established of the brands.
The Doppio Group’s bakery also provides supply chain opportunities to the group.
The Doppio Group generated total sales of over R600 million in the financial year ended
28 February 2023. The restaurants are styled on the European café culture. The first
Doppio Zero opened as a bakery and café in Greenside, Johannesburg, in 2002 and over
time the offering expanded from an artisanal and exclusive bakery into a full-service
restaurant, offering a range of Mediterranean specialities and traditional Italian fare. Piza
e Vino is a pizzeria with café-style dining and al fresco seating. The most recent addition
to the brand portfolio is the bespoke Modern Tailors restaurant inspired by Indian cuisine.
A total of 669 employees will be transferred from the Doppio Group, with 14% being
support staff and employees of the bakery. The remaining staff are employed at the
company-owned restaurants. The Founders will continue as executives of the Doppio
Group for a minimum of five years.
Following an operational and business due diligence, supported by valuations by
management and independently assessed by an external corporate finance institution,
the group has concluded heads of agreement with the Founders. The effective date of
the transaction is expected to be 1 September 2023, following fulfilment of all conditions
precedent and notification to the Competition Commission.
The purchase consideration falls below the threshold of a categorised transaction in terms
of the Listings Requirements of the JSE Limited.
Cape Town
27 July 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 27-07-2023 09:00:00
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