Veritas Investments will spend at least $3.4 million in combined cash and shares to acquire a 50% stake in the local Burger King meat patty supplier. Veritas is the company which purchased the Mad Butcher business earlier this year, according to Scoop.
The Auckland-based company will purchase half of Kiwi Pacific Foods. The deal will be funded with a combination of $2.8 million cash and $400,000 shares priced at $1.38 apiece. The shares have potential earn-outs if a certain export goal is met. Antares Restaurant Group, which owns the New Zealand Burger King franchise, holds the remaining stake of the business, the report detailed.
The sale's cash component will be funded through the ANZ Bank New Zealand debt facility. After tax profit in the first year, the meat patty supplier is expected to contribute $550,000, the report stated.
Michael Morton, Mad Butcher chief executive, said in a statement: "Kiwi Pacific Foods is a business that can be supported by the procurement base of the Mad Butcher Limited business and aligns us with the iconic 'Burger King' brand as our cornerstone client. We see good growth opportunities in export markets through the Burger King connections internationally."
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