Good Spirits Hospitality (GSH) has made a deal to buy Nourish Group, which will double the company's size.
Photo: 123RF
The conditional agreement would have GSH pay a base price of about $21.3 million plus another $5.9m payable 12 to 24 months after settlement, based on performance of Nourish's 10 bars and restaurants.
GSH will fund the purchase through a combination of cash and new debt, with the balance through an equity placement.
"This is a transformational growth opportunity for GSH," chair Duncan Makeig said.
Nourish's 10 venues include Auckland Viaduct's Soul Bar & Bistro, which has been in business for 20 years, and would lift GSH's staff numbers to more than 450.
"The combined group will provide a platform for further growth and innovation," Makeig said, adding Nourish Group's founder Richard Sigley will join the GSH board and executive.
"GSH's chief executive Geoff Tuttle and Richard Sigley have a long, successful history of working together growing and operating some of New Zealand's best performing and iconic establishments - we are excited by the prospect of them working together again and what the future will bring," he said.
GSH expected the deal to be settled in the first quarter of 2002, subject to a number of conditions including shareholder approval.
Nourish Group will retain The Crab Shack in Auckland.