29 January 2008 - NexCen Brands Inc., expanding its reach into the treats business, is purchasing the Great American Cookie Co. from Mrs. Fields Famous Brands LLC for $93.7 million.
Terms call for NexCen, New York, to pay $89 million cash and $4.7 million in common stock. A portion of the purchase price involved tapping its debt facility with BTMU Capital Corp. The facility was increased to $181 million from $150 million, NexCen said.
Great American Cookie operates about 300 franchised outlets in the U.S., many in shopping malls.
NexCen said it expects the transaction to be accretive this year. Forward 12-month revenue is projected to be $27 million and operating income $14 million, the company said. For the 12 months ended Dec. 31 Great American's aggregate pro forma unaudited revenue was put at $26 million and its operating income at $13 million.
Robert W. D'Loren, NexCen's president and chief executive, told Dow Jones Newswires he expects to franchise the cookie brand overseas, as his company has several other concepts. Plans also call for using Great American to augment product offerings in MaggieMoo's and Marble Slab Creamery ice cream shops that NexCen franchises.
A franchiser and licenser, NexCen's brands also include Pretzel Time, Pretzelmaker, The Athlete's Foot, Bill Blass, Shoebox and Waverly.
D'Loren said NexCen hopes to make several more acquisitions this year, with fast food a focus.
The cookie deal is the second between NexCen and Mrs. Fields. NexCen previously acquired the pretzel units from the closely held Salt Lake City, Utah, firm.
NexCen shares closed at $4.61, up 38 cents, or 9%, on the Nasdaq Stock Market.