AUCKLAND: Good Spirits Hospitality Limited (NZX: GSH) – leader in the Auckland pub market and owners of well-known venues including Danny Doolans and The Cav is seeking to expand its New Zealand hospitality operations with the acquisition of The Nourish Group.

GSH’s wholly owned subsidiary Good Spirits Hospitality No.2 Limited has entered into a conditional agreement to acquire all of the shares in Nourish Group Limited.

The base purchase price is ~$21.3million cash (on a debt free/cash free basis) with up to an additional ~$5.9 million payable 12 to 24 months after settlement through an agreed earnout formula based on venue outperformance.

Nourish owns 10 popular hospitality venues throughout New Zealand including Soul Bar & Bistro, Talulah, The Chamberlain, The Brit, Andiamo, Shed 5, The Crab Shack (Wellington), Pravda Café and Grill, Jervois Steak House (Auckland and Queenstown) and also provides advisory services to Bistro Lago.

It will also take the ownership rights to the brand The Crab Shack.

The acquisition will see the two successful hospitality operators join forces with an unmatched portfolio of talent, scale and mix of hospitality experiences right throughout New Zealand.

The combined group is well-placed for further growth with several proven repeatable concepts and brands which can be rolled out further around New Zealand and abroad which is exciting for both employees and shareholders. Once complete, Good Spirit Hospitality will employ more than 450 people.

“This is a transformational growth opportunity for GSH,” says Good Spirits Hospitality’s Chair Duncan Makeig.

“We are excited about the opportunity to leverage Nourish Group’s industry-leading expertise in the restaurant and social dining segments. The combined group will provide a platform for further growth and innovation. This is just the start of an exciting journey together.”

“We look forward to welcoming Nourish Group’s founder Richard Sigley, who will join the GSH Board and executive to lead our creative and growth agenda, along with his executive team and all the Nourish staff and patrons to the GSH group,” says Duncan.

“GSH’s CEO Geoff Tuttle and Richard Sigley have a long, successful history of working together growing and operating some of New Zealand’s best performing and iconic establishments – we are excited by the prospect of them working together again and what the future will bring,” added Duncan.

Throughout the past two decades, the Nourish Group has cemented its position as the benchmark for hospitality businesses in New Zealand winning several Lewisham Awards with its institutional, long-standing establishments.

It has a successful history of growth in the sector and of providing leading, innovative hospitality experiences.

“GSH is delighted for the staff in both companies and is committed to being the employer of choice in the on-premise hospitality sector,” said Geoff Tuttle, CEO of GSH.

“Both GSH and Nourish have dedicated, strong teams of talented hospitality professionals.

A united team with a shared purpose and values will see us continue to deliver excellent service and memorable experiences to our local communities.

We also each hold a number of long-standing, trusted partnerships with suppliers and industry players that we look forward to jointly leveraging with our new scale and geographic reach.”

The acquisition further delivers on the prospect of integrated learnings, growth and progression opportunities, while strengthening GSH’s commitment to train and develop future generations of hospitality leaders with the goal of creating an extraordinary group of New Zealand’s best hospitality professionals.

The owners of Nourish Group will retain The Crab Shack (Auckland). http://www.gsh.co.nz