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."
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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.
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By GlobalDataThe 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.
