Chanticleer Holdings, Inc. (OTCBB: CCLR) announced today that the Company acquired a majority ownership stake in its South African locations. Majority ownership will allow the Company to report consolidated revenue and operating results as part of its public company financial reporting obligations.
Chanticleer and its partners have acquired controlling and operating interest in three existing Hooters locations in Johannesburg, Cape Town and Durban (http://www.hooterssouthafrica.com), in which Chanticleer previously held a minority interest. The Company will be the owner and operator of these and any additional locations in South Africa. The acquisition of the remaining SG Shaw Foods (Pty) Ltd. stake in the joint venture is scheduled to close no later than September 30, 2011.
Mr. Michael Pruitt, the Company’s Chief Executive Officer, stated, “The success of our South Africa locations is largely due to the world-wide appeal and recognition of the Hooters(TM) brand. People living in and visiting markets around the world are anxious to experience highly recognized branded product offerings made famous in the United States — especially restaurants such as Hooters with its great menu, vibrant and exciting atmosphere, and of course, the world-famous Hooters Girls.”
Chanticleer became involved with Hooters as a result of a personal relationship between its CEO, Mike Pruitt, and the legendary founder of Hooters of America, Inc. (“HOA”) (http://www.hooters.com), Robert Brooks. In 2006, Chanticleer purchased a minority ownership interest in HOA for $5 million. In exchange, Chanticleer was also given the right of first refusal to buy HOA, the parent company of Hooters, in case of a future change in ownership of HOA.
Earlier this year, Chanticleer exercised this first right and brought together a group of noteworthy private equity investors to acquire HOA, including H.I.G. Capital, KarpReilly, LLC and Kelly Hall, president of Texas Wings, Inc., the largest Hooters franchisee in the United States. Today, HOA is the franchisor and operator of over 435 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.
