SINGAPORE – Global Yellow Pages Ltd, a Singapore-listed database and directories company, is paying $35.6 million to buy Gloria Jean’s Coffees, a 17-year old Australian business that now has 800 outlets in 39 countries. In a statement to the Singapore Exchange (SGX), GYP said the move is part of its strategy to expand in the food and beverage sector.
GYP is acquiring the entire stake from Australian firm Tea & Coffee Traders Pty Ltd which acts as trustee for the Saleh Family Trust.
The deal includes acquiring all “Gloria Jean’s Coffees” and “It’s A Grind” intellectual property, the global supply chain operations, and the master franchisor business for all its coffee houses worldwide.
GYP said there is significant potential for further expansion of the brand in Asia.
Its non-executive chairman Mah Bow Tan said: “The coffee drinking culture is growing fast in many Asian countries and we believe that this acquisition will provide GYP with a platform to tap into this growing trend in Asia, especially China.”
The acquisition will be paid for in cash and shares.
GYP did not disclose the full amount of the deal but it has proposed to raise up to S$62.9 million via a rights issue to fund the acquisition.
GYP’s CEO Stanley Tan and substantial shareholder Sam Goi have given their undertakings to become sub-underwriters for the rights issue.
In June this year, Global Yellow Pages bought Yamada Green Resources Ltd, a major supplier of edible fungi that operates one of the largest mushroom cultivation bases in Fujian province, China.
Global Yellow Pages focuses on up-to-date search and database marketing. It is also the largest publisher of directories and provider of classified directory advertising and associated products and services in Singapore.
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