Grand Parade Investments has increased its stake in Spur Corporation via its wholly-owned food services company, Grand Foods, subject to GPI shareholder approval. The proposed transaction between Coronation Fund Managers and Grand Foods will result in GPI having an effective holding of just less than 30 percent.
This acquisition embeds GPI’s strategy to focus on the food sector and to grow and diversify its investment portfolio beyond the gaming sector, by investing in and operating premium brands. It also creates the opportunity to further intensify the synergies within the supply chain and vertical integration opportunities in the sector.
Spur is a leading multi-brand restaurant franchisor, headquartered in Cape Town, and listed in the travel and leisure sector of the JSE. Spur franchises five table-service sit down restaurant brands: Spur Steak Ranches, Panarottis Pizza Pasta, John Dory’s Fish Grill Sushi, The Hussar Grill and Casa Bella. Spur is also the franchisor of Captain DoRegos, RocoMamas and Spur Grill & Go.
In 2014, the black-owned GPI acquired 10 percent of Spur shares by way of a BEE deal. The increase in shareholding will enhance Spur’s black ownership and further enable a mutually beneficial relationship for both companies.
“Our food portfolio is growing and we pride ourselves on investing in only the best brands. Spur is a well-run company, led by an experienced management team, and has a healthy balance sheet. Collectively this investment helps pave our way towards our vision of becoming a leading integrated food services company, with the best local and international brands, in Africa,” says GPI Chairman Dr Hassen Adams.
Grand Foods currently operates BURGER KING®; Dunkin’ Donuts, which launched in Cape Town this October and Baskin-Robbins, set to launch in South Africa in the coming months.
Grand Foods CEO Alan Keet says, “The increased shareholding in Spur allows us to assess the strategic synergies between the two companies at our own pace and to consider how best to extract value from our existing food assets. The Spur team could bring invaluable expertise to the franchise model for our existing brands.”