Veritas Investments Limited is making another acquisition, signing a deal to purchase the Nosh Food Market business and assets from Nosh Management Limited.
Veritas, owner of the Mad Butcher franchise business, made the announcement less than one week after reporting that it had met profit forecasts and declared increased dividends.
Acquisition of the specialty food business is expected to be completed in early September.
It is conditional on Nosh Management Limited shareholder approval, as well as landlord and key supplier consents.
With an 88 per cent share holding in Nosh Management Limited, Paul Lucas has undertaken to vote in favour of the transaction.
As part of the purchase, Veritas will acquire all of Nosh Management Limited’s ownership and franchisor interests, comprising five stores wholly-owned, one part-owned and one operated as a franchise. Ongoing employment is being offered to Nosh staff.
The acquisition is highly desirable and complementary on a number of levels, Mark Darrow, Veritas chairman, said.
“Nosh is a great brand and fits perfectly into our food service and retail investment strategy. There is a food revolution occurring in New Zealand, encouraged by a plethora of cooking shows on television and a growing base of discerning consumers with a growing knowledge of food and an appetite for quality cuisine. Nosh is one of the best brands in this space.”
Darrow said that with Nosh’s impressive revenue, Veritas see a considerable potential for growth and innovation, and are confident the group can add substantial value to the business.
He said future plans include overhauling the underlying supply chain model, refreshing the stores and working positively with staff to grow the Nosh brand and deliver an even better customer experience.
It is undecided at this stage if Veritas will pursue the franchise model or mixed ownership model, he said.
Michael Morton, Veritas director and Mad Butcher CEO, said that Nosh is complementary to the other food businesses in the Group, and could leverage off existing procurement base and supplier relationships.
“There are undoubtedly synergies available and it gives us a number of exciting development opportunities across the Veritas Group.”