Cofix Group Ltd. (TASE:CFX) subsidiary Urban Cofix today announced that it was combining with a group of investors to found a holding company to develop and establish chains of Cofix cafes all over the world.
Six months after opening Cofix branches in Russia, Cofix is expanding its global deployment and setting up chains of cafes in other countries together with its partners in Russia.
The chain, which started establishing branches outside Israel last October, has signed an agreement with a group of investors led by Satesh Melwani and Mikhail and Grigory Perchersky, the same group with which it previously signed an agreement to open Cofix branches in Russia.
As part of the contingent memorandum of understanding signed, which provides for cooperation in developing and founding a chain of cafes under the Cofix name to sell coffee, beverages, pastries, sandwiches, etc. at a uniform price for every product throughout the world, except for Israel, the US, and Turkey, it was agreed that Urban Cofix and the investors would found a holding company, through which they would manage the venture. Urban Cofix will hold 30% of the share capital in the holding company without making any investment, and the investors will hold the other 70%.
The holding company, which has the exclusive right to use the Cofix name and commercial trademark, will found, by itself or with partners, a subsidiary in every country in which it is decided to operate in the framework of the venture. Activity in each country will be managed through the subsidiary there on a format similar to the one used for the activity of Urban Cofix cafes in Israel.
Under the initial plan for developing the venture, infrastructure will be set up in 2017, and business will commence in two European countries in 2018 and in eight more countries in 2019.
Cofix's first international business began in Russia in May 2016 in partnership with the same groups of investors. Six Cofix cafes currently operate in Moscow: two operated by Cofix and four by franchise holders. In addition, 17 agreements have been signed for franchise holders to open branches. The Cofix chain currently has 133 cafes in Israel and 29 Super Cofix supermarkets.
Cofix CEO Haim Aharon said, "The worldwide Cofix brand is becoming stronger, and the chain is headed in the direction of global expansion. The success in Russia has led to additional demand in different countries, and the right policy with the partners led us to join forces with the same group of investors to develop additional global business. The agreement by the partners to go ahead with their investment without any financial investment by Cofix proves the large added value that Cofix brought to the opening in Russia and afterwards."
Aharon added, "The partnership with the investment group will make it possible to conduct professional operations on an international scale, with a thorough understanding of the local market and taste. Cofix branches will be opened by means of local subsidiaries, which will provide an accurate response and guarantee success."
Published by Globes [online], Israel Business News - www.globes-online.com - on May 24, 2017
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