Veritas confirms purchase of Nosh Food Market

News Release

9 September 2014

Veritas confirms purchase of Nosh Food Market

Veritas Investments Limited (“Veritas”) has completed a deal to purchase the Nosh Food Market business and assets (“Nosh”) from Nosh Management Limited.
All conditions, including Nosh shareholder approval, have been met to the satisfaction of Veritas and all Nosh staff have been offered ongoing employment.

It is Veritas’ third acquisition in 16 months after acquiring the Mad Butcher franchisor business in May 2013 and a 50 per cent holding in Kiwi Pacific Foods in December 2013. Veritas recently announced it had met profit forecasts and declared increased dividends.

Veritas Chairman Mark Darrow says, “We are delighted to have Nosh under the Veritas umbrella and excited about the huge potential of the business. The search for an Executive to run Nosh is already underway. In the interim our Mad Butcher CEO Michael Morton will be hands-on in the Nosh business and will handle the transition period and important first steps of improving the business model to give Nosh renewed energy.”

Veritas Director and Mad Butcher CEO Michael Morton adds, “The response and support we have had from Nosh staff, suppliers and business partners has been amazing. We appreciate there is a lot of work ahead to reinvigorate the business but I am very confident we can achieve this relatively quickly. We are already working on a number of changes and innovations that will ensure Nosh has the best stores in the growing food market sector.”

Details of the transaction
- The Nosh business has been acquired for $1.77m, approx. $1.0m below net tangible assets
- $0.5m of the purchase price payable has been retained for 90 days and is subject to various warranties and completion balance sheet verification
- Veritas has agreed to meet all of Nosh’s trade creditors
- Veritas is not assuming any Nosh bank or debenture debt
- The acquisition and expected working capital requirements have been funded by a facility of up to $5.0 million with ANZ Bank.

About Veritas Investments Limited
Veritas is an NZX-listed investment company focusing in the Food and Beverage sector. The shell company was formed in December 2011 and made its first acquisition of the Mad Butcher franchisor business in May 2013 through a reverse acquisition transaction. A further investment was made in December 2013 for 50% of Kiwi Pacific Foods Limited. The most recent addition on 8th September 2014 is the high-profile Nosh Food Market business. Veritas continues to look for additional acquisitions in the food, beverage and franchise sectors.

About Nosh
Nosh Food Market is a market-style concept in food shopping bringing together the authenticity and expertise of butchery, bakery, delicatessen, the greengrocer and more under one roof. Nosh focuses on quality fresh food and produce at affordable market prices appealing to modern household shoppers. It employs qualified, food-loving people who enhance the Nosh shopping experience. Nosh enjoys an exclusive distribution arrangement with leading UK grocer Waitrose which provides access to a wide range of exciting international food products including exclusive lines from chefs such as Heston Blumenthal and Delia Smith. Current Nosh stores are located in Glen Innes, Greenlane, Mt Eden, Ponsonby, Constellation Drive, Matakana and Mt Maunganui.

ENDS

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