SYDNEY, AUSTRALIA: Retail Food Group Limited (ASX: RFG) has signed an agreement to purchase the trade & assets of Beefy’s Pies including the share capital of Beefy’s Pty Ltd which owns the Intellectual Property for total consideration of $10 million.

Established in 1997, Beefy’s is a family-owned business committed to making great quality products. Key products are manufactured in-house at Beefy’s factory on the Sunshine Coast.

Vertical integration of manufacturing ensures the brand delivers on its vision of ‘Bigger, Better, Beefier Meat Pies – Guaranteed’.

Implied acquisition forward multiple of approximately 4.0x Enterprise Value / FY24 forecast pro forma EBITDA for the 12 months ending 30 June 2024.

Retail Food Group CEO Matt Marshall said: “RFG is pleased to be in a position where it can look for inorganic growth opportunities.

The acquisition of Beefy’s is significant not only because it is a great business that is complementary to our existing brand portfolio but because it marks the beginning of RFG’s next phase of growth. We look forward to working with the Hobbs family and all Beefy’s employees to ensure their pies can be enjoyed by more and more Australians.”

Beefy’s CEO Mark Hobbs said: “We’re proud of what we have achieved as a family-owned business since opening our first store in 1997.

Beefy’s is now a much-loved Australian brand, has nine strongly performing stores and a manufacturing facility on the Sunshine Coast, and employs 200 people. Joining the RFG network will help Beefy’s take the next step in its growth journey as we will become part of a team with many decades of retail experience, as well as benefit from being in a group with a larger balance sheet and access to support functions.”