US-based company ARC Group has signed a non-binding letter of intent (LOI) to acquire Yobe Frozen Yogurt, a self-serve yogurt franchise.
Yobe has 34 locations spread across Florida, Georgia, Louisiana and New Jersey.
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ARC Group chief executive officer Richard Akam said: “Our proposed acquisition of Yobe is significant because it represents an expansion of our business into a new segment of the quick service restaurant market.
“Yobe is a proven and successful brand that provides a variety of options beyond traditional company-owned and franchised locations, such as convenience store islands and end caps that require a minimal investment by the store owner.
“These additional sales channels can provide ARC Group with additional revenue sources that have high growth potential in our current markets and additional states."
ARC Group will pay approximately $1.4m to Yobe for this acquisition, along with a $900,000 earn-out payment tied to Yobe's performance during the first two years post-completion of the deal.
The acquisition is expected to complete within next 90 days, which is funded through a combination of cash and debt.
Completion of this transaction is subject to the execution of a definitive purchase agreement, and the acquisition of suitable financing by ARC Group.
Image: A spoon of frozen yogurt. Photo: courtesy of freedigitalphotos.net/Stuart Miles.
