Chanticleer Holdings has bought out SG Shaw Foods from all Hooters locations in South Africa giving the company and its limited partners majority ownership. Value of the transaction was undisclosed.
Chanticleer Holdings, Inc. (OTCBB:CCLR) announced today that the Company has bought out SG Shaw Foods (Pty) Ltd. from all Hooters South Africa locations giving the Company and its limited partners majority ownership. Majority ownership and operating control of the three restaurants will allow Chanticleer Holdings to report consolidated revenue and operating results as part of its public company financial reporting obligations.
As part of the deal, Chanticleer has also obtained Shaw’s interest in the Hooters franchise rights for South Africa and formed a South African management company. Under the new management company, all Hooters South Africa locations will be operated by Gordon Jestin and Mark Philip Hezlett. Mr. Jestin will take on the role of Chief Operating Officer and manage day-to-day operations. Mr. Hezlett will serve as Chief Financial Officer. Mr. Jestin was part of the original management team under the joint venture between Chanticleer and SG Shaw Foods. Mr. Hezlett acted as an external accountant to the venture.
Michael Pruitt, Chief Executive Officer of Chanticleer Holdings, stated, “The cornerstone of Chanticleer Holdings has always been to identify and execute on value based growth opportunities in privately-held, and publicly-traded companies. By acquiring full ownership of all Hooters South Africa locations with our partners, we have continued our commitment to our shareholders by providing them with a reliable and profitable investment in a market where the Hooters brand is in demand.”
About Chanticleer Holdings, Inc.
Chanticleer Holdings was formed in 2005 as a business development company and converted to an operating holding company in 2008. For the next three years the Company invested in privately held or publicly-traded small or micro-cap, value-based opportunities through privately managed pools of capital.
In 2011, Chanticleer and a group of noteworthy private equity investors, which included H.I.G. Capital, KarpReilly, LLC and Kelly Hall, president of Texas Wings Inc., the largest Hooters franchisee in the United States, acquired HOA. Today, HOA is the franchisor and operator of over 450 Hooters restaurants in 44 states and 28 foreign countries. In addition to Chanticleer maintaining its ownership stake in HOA, its CEO, Mike Pruitt, is also a member of HOA’s Board of Directors.
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