NexCen Brands Bags Great American Cookie Company For $93.70 Million - Update
Tuesday, January 29, 2008; Posted: 07:46 PM
(RTTNews) - Tuesday, NexCen Brands, Inc. (
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ts ), a company engaged in the acquisition and management of intellectual property and IP centric businesses, announced the acquisition of Great American Cookie Company from Fields Famous Brands, LLC. The cost of the deal is $93.70 million and comprises about $89.0 million of cash and Nexcen common stock valued at about $4.70 million.
The company said the deal added another premium treat brand to the four brands in NexCen's quick service restaurant or QSR portfolio. With the acquisition of Great American Cookie, the company's brand reached nine and increased its franchise location to 1,900 locations from 1,600 locations globally.
The New York-based company's President and CEO, Robert D'Loren, stated, "Great American Cookies is a great opportunity for us to enter the cookie business with a premium cookie brand that has grown consistently over the years. The brand is representative of the acquisition opportunities NexCen has targeted to grow our QSR segment and to increase sales in our existing ice cream and pretzel concepts."
D'Loren added, "The addition of this brand to our QSR portfolio provides NexCen with nearly 300 additional doors for the delivery of quality treat products, and broadens our franchise offering for interested franchisees, both domestically and internationally."
For a part of the acquisition price, NexCen accessed its debt facility with BTMU Capital Corporation that was increased from $150 million to $181 million.
Great American Cookie Company's total pro forma unaudited revenues and operating income for the 12 months ended December 31, 2007 were about $26 million and $13 million respectively. Nextcen anticipates this deal to be accretive commencing from 2008. Upcoming twelve months revenues and operating income are projected to be $27 million and $14 million respectively.
The Great American Cookie company was founded in 1977. It provides cookies, cupcakes, brownies, and smoothies to a diverse and loyal customer base. The company had almost 300 franchised units, which was mainly situated in the continental United States.
BTMU Capital Corporation is a leading provider of structured financing and connected financial services in the United States and worldwide.
2008 Guidance
Looking ahead, the company has revised its 2008 guidance. Accordingly, the company expects its earnings in the range of $0.27 - $0.30 per share on a non-GAAP basis for 2008. Wall Street analysts expect the company to earn $0.21 per share for 2008.
NEXC finished Tuesday's regular trading at $4.61, up $0.38 or 8.98%, on a volume of 1.18 million shares on the Nasdaq. In after-hours trading, the stock further gained $0.16 or 3.47%, and was at $4.77.
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