New Zealand’s Cooks Global to buy Mojo Coffee Cartel for $19 mln

Cooks Global, a New Zealand-based food and beverage company, plans to buy peer Mojo Coffee Cartel for $19 million and support the Wellington chain's U.S. expansion plans.

Cooks Global will pay $11.7 million in cash, $2 million in shares and take on $5.3 million of debt to acquire Mojo. The deal relies on the company raising enough money to fund the cash component, and Mojo securing a lease variation and completing acceptable.

The acquisition will boost Cooks’ earnings and market capitalisation and help accelerate its shift from New Zealand Stock Exchange’s alternative market to the main board, increase its market liquidity and broaden the company’s investor base.

Cooks Global 's shares last traded at 7.5 cents, valuing it at $36.7 million.