The hospitality company Savor Limited is on the acquisition trail after shedding its loss making Moa Brewing business.
Amano restaurant in the Auckland CBD has changed ownership. Photo: Amano / Abbi Pritchard Jones
The company sold the brewery business last month, and has moved quickly to buy three restaurants from the Hipgroup in downtown Auckland for $7.2 million in cash and $1m in Savor shares.
A further cash payment of $2.9m is payable 12 months after the transaction is settled.
Savor chief executive Lucien Law said the acquisitions would complement its current outlets.
"The venues are extremely popular and ... will enhance the breadth of our offering, such as having all-day service, and widen our footprint in the region."
The venues - Amano, Ortolana and The Store - are all in Auckland central city.
The new acquisitions were expected to contribute about $3m a year to the company's operating earnings.
The company said the divestment of Moa Brewing had freed up cash and allowed it to focus on growing its more profitable hospitality business.
Savor was also planning to raise another $6m through an underwritten share issue to shareholders at 17.6 cents a share. It expected to have about $7m in cash on standby as part of its new debt facility.
The money will be used to strengthen the company's balance sheet and fund future acquisitions.