Mojo Coffee Cartel is pleased to announce it has entered into a conditional agreement for Cooks Global Foods to acquire 100 percent of its shares.
The transaction values the business at $19 million (subject to adjustments for net debt and movements in working capital), to be paid through a combination of cash and shares.
Loved by Wellingtonians for the past 15 years, Mojo Coffee Cartel co-founder Steve Gianoutsos says the new deal represents an exciting opportunity for the Mojo family to expand internationally while focus on the development of their New Zealand staff and stores.
“Since we started Mojo in Wellington 15 years ago, it has grown significantly and is now a highly recognised and well loved coffee brand. This has largely been down to the people who work in Mojo stores and the great customer experience.”
“Cooks is going to be really good for us in helping expand Mojo. Their experience in international markets and strategy to look globally is going to get our international expansion really firing; it’s something we’ve been pushing for some time. I’ve been working in the flagship Chicago store and we’re looking to push out into the US and beyond.”
Following the acquisition, Mojo will retain its brand and people with Steve Gianoutsos, the co-founder of Mojo, and executives Katy Ellis and John Holloway joining Cooks’ senior management team while continuing to run the Mojo business. It is intended that expansion in the US will be led by Gianoutsos.
The acquisition, which is subject to the conditions being satisfied, will give Cooks a New Zealand presence and significantly enhance its scale. It will extend Cooks’ global store network to 142 stores and accelerate its transition to generating positive cashflow.
Cooks executive chairman Keith Jackson says: “We expect it to provide a lift to Cooks’ earnings, free float, and market capitalisation. This, coupled with Cooks’ well-signalled plan to move to the NZX Main Board, have the potential to increase our market liquidity and broaden the company’s investor base.”
Concurrent with the acquisition, and in order to fund the cash component of the purchase price, Cooks intends to seek new capital. The pricing and structure for this capital raise is yet to be confirmed but will likely take the form of a renounceable rights issue.
Cooks will make further announcements in this respect once a final decision is made.
Photo: Mojo Founders Steve and Julie Gianoutsos outside Mojo Chicago.