Bain to buy majority stake in Australia drink bar franchise

A source familiar with the situation told AVCJ that the transaction values the enterprise at A$180-185 million ($168-173 million).

Bain will make its investment alongside Janine Allis, one of the Retail Zoo's original founders, who reduced her holding in 2010 when Riverside took a 70% stake for $70 million. She will retain a similar-sized investment as part of the new deal, which is expected to close by the end of this month.

The news comes following a prolonged auction process that also included regional buyout firm Affinity Equity Partners and Australia's Archer Capital. Affinity was said to have entered exclusive negations with Retail Zoo last January but since pulled out of the auction after carrying out due diligence, prompting early bidder Bain to step back in.

The Boost Juice franchise was launched in 2000, with the first store opening in Adelaide. The chain has since expanded globally and now has 300 stores - up from 250 when Riverside first invested - in 11 countries across Asia, Europe and the Middle East.

Aside from Boost Juice, Retail Zoo also owns food franchise brands Salsa's Fresh Mex Grill, Hatch Chicken Shop and Cibo Espresso, a franchiser of espresso bars in South Australia and Queensland that it acquired via a bolt-on acquisition worth $15 million in late 2012.

Bain, which is expected to continue with the franchise's international expansion is building on a wealth of experience in quick service food and drink sector. In Asia, the firm bought Japan's largest casual dining chain Skylark in 2011 and recently sold 75% of Domino's Japan to Domino's Australia.

UBS has been advising The Riverside Company and Retail Zoo's other shareholders exit options since last year, while Nomura is advising Bain.

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• Topics
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• buyout
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