NexCen to buy Marble Slab, Maggie Moo’s
Feb 16, 2007 10:41 AM
NexCen Brands Inc has entered into definitive agreements to acquire MaggieMoo’s International LLC and the assets of Marble Slab Creamery Inc, two established brands in the hand-mixed ice cream category. The total combined initial purchase price is $37.1 million, plus a potential earn-out of up to $2 million on the MaggieMoo’s acquisition.
These two transactions are expected to be completed before the end of the first quarter. They mark the first acquisitions for NexCen in the quick-service restaurant (QSR) sector.
The initial purchase price for MaggieMoo’s is $16.1 million, consisting of about $10.8 million of cash, and NexCen common stock valued at around $5.3 million. NexCen also agreed to an earn-out arrangement that will entitle the sellers of MaggieMoo’s to receive up to $2 million more. The additional amount will be payable if recurring royalties and non-recurring franchise fees for 2007 meet performance targets specified in the acquisition agreement.
In the Marble Slab acquisition, the purchase price is $16 million of cash, with seller notes of $5 million that earn interest at 6% per annum and are payable one year from closing.
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