A takeaway and cafe giant is buying Gloria Jean's Coffees for $163.5 million from the man who brought the franchise to Australia.
Retail Food Group, which owns Michel's Patisserie and Donut King, will soon control the 35-year-old cafe group with 800 outlets in more than 40 countries.
They are buying the global franchising and coffee roasting business from Gloria Jean's executive chairman Nabi Saleh's private company.
In 1996, Mr Saleh and Peter Irvine brought Gloria Jean's to Australia, opening an outlet in the Sydney suburb of Miranda.
Mr Saleh, who is also a board member of the Hillsong Pentecostal church, is staying with the business for at least another two years, along with his senior management team.
He said Retail Food Group's reputation as a food and beverage operator and expertise in building franchise businesses made them ideal to lead the continued expansion of Gloria Jean's.
Gloria Jean's has 358 stores in Australia, 87 in the United States and franchises in 40 other countries.
The deal comes four months after Singapore-based Global Yellow Pages pulled out of a deal to buy Gloria Jean's.
Retail Food Group, which also runs Cafe2U and The Coffee Guy, said the global coffee chain had long been a target.
It will pay $153.5 million in cash plus $10 million in its own shares, plus up to a further $16.4 million depending on Gloria Jean's performance.
It will raise $55 million to help fund its purchase through the issue of new shares to institutional and sophisticated shareholders.
The company has also increased its senior debt facility with National Australia Bank, from $135 million to $253 million.
Its purchase of Gloria Jean's is expected to be settled by December.
It is also buying privately-owned gourmet coffee maker Cafe Palazzo.
WHAT RETAIL FOOD GROUP ALREADY OWNS:
* Donut King
* Michel's Patisserie
* Brumby's Bakery
* Esquires Coffee
* Crust Gourmet Pizza Bar
* Pizza Capers
THE GLORIA JEAN'S STORY
* 1979, founded in Chicago suburb of Long Grove
* 1996, first Australian outlet opened
* 2004, Australian arm acquires global franchise rights outside US
