Famous Brands Limited - Famous Brands Acquires Bimbo"s Franchise Agreements
FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Previously Steers Holdings Limited)
(Registration number 1969/004875/06)
Share code: FBR ISIN code: ZAE000053328
FAMOUS BRANDS ACQUIRES BIMBO"S FRANCHISE AGREEMENTS
Johannesburg, 16 November 2005: Famous Brands (FBR) has concluded a transaction
with King Consolidated Holdings to acquire that group"s complement of 38 Bimbo"s
franchise agreements linked specifically to Engen Petroleum Company forecourt
sites. The intention is to convert these sites to Steers restaurants. The deal
is subject to the fulfillment of certain conditions precedent.
Famous Brands Chief Operating Officer, Kevin Hedderwick notes: "The distinction
is important - we are acquiring the franchise agreements related to the brand"s
sites, as opposed to the brand itself. This acquisition enhances our core
strategy of capitalising on the growing shift by consumers towards convenience,
by ensuring that our brands are situated within arms" reach of desire."
Hedderwick says: "In the event that we can secure Conversion Agreements from the
existing Bimbo"s / Engen franchisees by 15 January 2006, work will commence on
converting these sites, an exercise which we hope to have completed by 1 July
2006."
Negotiations with existing Engen / Bimbo"s franchisees in this regard will
commence within the next few weeks.
Over and above the group"s minimum requirement of 26 convertible sites to Steers
restaurants, any site not suitable for conversion to a Steers restaurant will be
considered for conversion to one of Famous Brands" other brands. Alternatively
Engen will consider converting to one of their in house brands. The Bimbo"s
trademark will remain the property of King Consolidated Holdings, and will
continue to trade outside of the Engen network.
Hedderwick concludes: "The upside of this transaction is twofold, the
acquisition is obviously earnings enhancing, but equally, affords us access to
major convenience sites which will extend the Steers brand footprint and Famous
Brands" convenience centred offering.
Rosebank
16 November 2005
Sponsor
Java Capital (Proprietary) Limited
Date: 17/11/2005 09:17:15 AM Produced by the JSE SENS Department
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