Ice cream retailer Allied Brands has announced the acquisition of biscuit and coffee franchise Cookie Man for A5.83m (US$4,58m).

The company said that it has agreed to buy Cookie Man’s 2.5m shares at A$0.33 per share, plus a cash payment of A$5m. An additional performance-related payment of A$700,000 may be released at a later date.
“It is expected that in 2007-2008 significant synergies will be achieved between these two complementary brands through cross selling and sharing of logistics and marketing costs,” Allied Brands said.
Following the acquisition, Allied Brands said its revenue forecast had increased from A$11.6m to A$13m for the 2007 financial year. The statement said the 2008 financial year forecast was revenue of A$22.9m and pre-tax profit of A$3.4m.