Bookseller Dymocks buys Healthy Habits
Lema Samandar
February 3, 2009
Australian bookseller Dymocks Pty Ltd has branched out into the food business by purchasing an 80 per cent stake in sandwich bar chain Healthy Habits Franchising Pty Ltd.
The deal was made for an undisclosed sum and includes 30 sandwich bar franchises.
"We've been looking for some time now for a good Australian business on a growth curve and we came across Healthy Habits about six or eight months ago," Dymocks chief executive Don Grover told AAP.
Mr Grover said Dymocks will also look to aggressively expand the sandwich bars.
"We think this model is a very good one for a broad distribution around shopping centres in Australia and internationally.
"We got another ten (stores) confirmed for this year so far and we're obviously going to look for as many as we can handle over the next 18 months."
Dymocks will run the two business as separate operations but synergies will take place in its finance IT and legal departments.
The founder of Healthy Habits, Katherine Sampson, will retain a 20 per cent equity holding and remain managing director.
"Dymocks has a wealth of retail and franchise experience which will assist in accelerating our aggressive expansion plans," Ms Sampson said in a statement.
"Our ability to tap their expertise as well as access (to) their tried and trusted processes and systems will mean greater support and improved efficiencies for stores."
Mr Grover said the acquisition came at a time when Dymocks was looking to diversify and acquire businesses.
"We will continue to look for both retail and property acquisitions," he said.
"I think there is going to be a number of good opportunities for businesses like ours that are well positioned to invest.
"At this stage there's been no shortage of people coming to us with some very interesting opportunities."
Mr Grover said Dymocks' sales grew by six per cent in December from the same time last year and profit remained strong.
Source: http://news.smh.com.au/breaking-news-business/bookseller-dymocks-buys-healthy-habits-20090203-7wjp.html