Aegis Brands Announces Sale of Second Cup Coffee Co. to Foodtastic
|Areas||Commercial Real Estate, Corporate and Commercial, Tax|
Goodmans LLP acted for Aegis Brands Inc.
Aegis Brands Inc., ("Aegis" or the "Company") entered into a definitive agreement (the "Purchase Agreement") to sell substantially all of the assets comprising its specialty coffee brand Second Cup Coffee Co. ("Second Cup") to Quebec-based Foodtastic Inc. ("Foodtastic"), an emerging leader in the restaurant franchising industry (the "Transaction").
The purchase price under the Transaction consists of $14 million in cash payable on closing (subject to customary closing adjustments), as well as a post-closing earn-out based on royalties earned from certain Second Cup cafés opened following closing. The Transaction will significantly strengthen Aegis' balance sheet and permit the Company to accelerate its previously announced growth strategy through accretive acquisitions.