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FAMOUS BRANDS LIMITED - Famous Brands adds Italian flair to best-in-class brand portfolio with acquisition of Europa and Fego caff?

Release Date: 26/11/2012 07:30
Code(s): FBR     PDF:  
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Famous Brands adds Italian flair to best-in-class brand portfolio with acquisition of Europa and Fego caffé

FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR
ISIN code: ZAE000053328
(“Famous Brands”)



FAMOUS BRANDS ADDS ITALIAN FLAIR TO BEST-IN-CLASS BRAND PORTFOLIO
          WITH ACQUISITION OF EUROPA AND FEGO CAFFÉ


Johannesburg; Monday, 26 November 2012: Famous Brands (JSE share code: FBR) has acquired
the franchise agreements, trademarks and intellectual property of the Europa and Fego Caffé brands
from family-owned business, Antimo Foods. The Europa and Fego Caffé network currently
comprises 31 and 27 restaurants respectively. The effective date of the transaction is 01 December
2012. The acquisition consideration is not material, and will be funded via short-term debt
repayable over two years.

Famous Brands CEO, Kevin Hedderwick, says, “This acquisition of Europa and Fego Caffé fits well
with our strategy to acquire best-in-class brands which fill gaps in the Group’s repertoire and serve
to establish a presence in market segments where we currently have limited, or no representation.
We have previously advised the market that a key priority for Famous Brands will be to enter the
family casual dining sector, and are therefore delighted to have acquired the pedigreed Europa
business, which enjoys a well-entrenched reputation in this space.”

“In addition,” says Hedderwick, “current trends clearly illustrate that the food service market is
underpinned by four major growth sectors: breakfast, coffee, snacking and chicken, and both Europa
and Fego Caffé extend our presence within those categories.”

He adds, “Further compelling reasons for this acquisition include the opportunity to grow these
brands nationally – their current presence is fairly limited and confined to certain geographical
regions, which offers significant upside to expand the footprint nationwide. Over the forthcoming
five-year period, we envisage growing the network to a national footprint comprising of 50
restaurants each.”

“Europa and Fego Caffé are quality assets that do not require re-engineering or re-invention, and will
not be a distraction to management. Through this transaction we can add value to our core
restaurant offering, unlock future numerical growth, and extract obvious operational synergies,
whilst at the same time very quickly integrating the business into our supply chain, thus building
volumes in our manufacturing and logistics businesses ,” Hedderwick comments.

Salvatore Osato, Antimo Foods CEO, says, “We are excited that Famous Brands will become
custodian of our South African brands – Europa and Fego Caffé. We have utmost faith that the
business we have built over many years will now be taken to the next level, and in so doing, make
our "brands famous". We are confident that our valued franchisees will benefit tremendously from
the know-how, infrastructure and support systems associated with the undisputed leader in our
industry. We see this as the start of a long term relationship with this fantastic Group.”
For further information:

Kevin Hedderwick                       Del-Maree English
Chief Executive Officer                Investor Communications
Famous Brands                          Mobile: 083 395 8608
Telephone: 011 651 5812



Sponsor:

The Standard Bank of South Africa Limited

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