STOCK EXCHANGE RELEASE 23 March 2018, 8:00 am
RESTAMAX EXPANDS OPERATIONS TO DENMARK
Restamax Plc is expanding its restaurant operations to Denmark. In Denmark, Restamax will operate through its subsidiary Restamax Operations Denmark. The company will buy over 90% of the popular Danish Cock's & Cows and The Bird companies, which currently operate a total of 11 restaurants and bars in Copenhagen.
During summer 2018, both restaurant concepts will open new units in prime locations at the Copenhagen international airport. The concept's restaurants are already located in key Copenhagen areas, such as Gammel Strand, Kødbyen and Tivoli as examples.
"The Danish restaurant market of some EUR 8 billion is extremely competitive, yet significantly more fragmented than in Finland. Cock's & Cows and The Bird are extremely successful and popular concepts, which can also be scaled into other countries," says Restamax CEO Juha Helminen.
Founded in 2010, Cock's & Cows operates a hamburger and party bar concept. The Bird is newer, a gin and craft beer bar founded in 2013 and focused on a high-quality selection of beverages.
In the 2017 financial period, the total turnover of the businesses acquired now was some MEUR 9 and EBITDA was MEUR 0.8. With the openings late in the 2017 financial period and in 2018, turnover is estimated to increase to some MEUR 20 and EBITDA to over MEUR 2 in the 2018 financial period. A preliminary estimate of the unencumbered value of the companies is MEUR 22, of which Restamax's share is 75 per cent. At the moment of completing the transaction, Restamax will pay MEUR 10. The purchase price will be paid in cash. In accordance with the earn-out arrangement, the remaining instalments will be paid in August 2018 and February 2020. The earn-out arrangement is result-based. The business operations and ownership of the object of the transaction will transfer on 4 April 2018.
The founders of Cock's & Cows and The Bird, Lasse Wiwe and Daniel Knuttel, will work as partners in Restamax Operations Denmark. Restamax will own 75 per cent and Wiwe and Knuttel 25 per cent of the joint venture. Wiwe and Knuttel continue in the operative management of business operations.
"Wiwe and Knuttel have a strong background at the core of the Danish restaurant world spanning over 20 years. In addition to food restaurants, they have great experience in the business operations of restaurants focused on socialising as well as nightclubs. Their knowhow and market knowledge create a solid foundation for our company to grow in Copenhagen, more widely in Denmark and possibly in other Northern European countries too. We see significant potential in the nightclub and entertainment restaurant business in Denmark. In addition, this cooperation makes it possible for Restamax to expand its own concepts into Denmark," says Helminen.
"Restamax's strategic objective is to expand its restaurant operations abroad during 2018. This is the company's first step to realise the strategy. With the transaction, our objective is to reach a key position in the Danish restaurant market," says Restamax Chairman of the Board of Directors Timo Laine.
Restamax's goal is to reach a turnover of approximately MEUR 400 by the end of 2020 after internal eliminations. The goal of the restaurant segment is to reach a turnover of approximately MEUR 200, and the goal of the labour hire segment is to reach a turnover of approximately MEUR 220 by the end of 2020.
Juha Helminen, CEO, Restamax Plc, tel. +358 40 535 5560
Jarno Suominen, CFO, Restamax Plc, tel. +358 40 721 5655
Images of the Cock's & Cows and The Bird restaurants at Restamax's website: http://www.restamax.fi/en/for-media/media-gallery
Restamax Plc is a Finnish restaurant business and labour hire services group established in 1996. The company, which was listed on NASDAQ Helsinki in 2013 and became the first Finnish listed restaurant company, has continued to grow strongly throughout its history. The Group companies include more than 130 restaurants, nightclubs and entertainment centres all over Finland. Well-known restaurant concepts of the Group include Stefan's Steakhouse, Viihdemaailma Ilona, Classic American Diner and Colorado Bar & Grill. In 2017, Restamax Plc's turnover was MEUR 185.9 and EBITDA MEUR 22.4. Depending on the season, the Group employs approximately 2,250 people converted into full-time workers. Restamax's subsidiary Smile Henkilöstöpalvelut Oy employs approximately 9,000 people per month.
Restamax company website: www.restamax.fi, Restamax consumer website: www.ravintola.fi, Smile Henkilöstöpalvelut: www.smilepalvelut.fi