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Salem, Ore.-based Figaro's Italian Pizza Inc. has entered into an agreement to acquire the Nick-N-Willy's Pizza franchise, which is owned by World Famous Pizza Company Ltd.'s Colorado subsidiary, Nick-N-Willy's Franchise Company LLC.
The letter of intent for the acquisition is dated Nov. 7. Terms of the LOI include Figaro's paying a purchase price of $600,000, of which $400,000 is payable on closing, and $200,000 is payable in two installments of $100,000 each on Feb. 25, 2013, and Feb. 25, 2014. The payment deadlines are subject to certain adjustments based on the royalties received by Figaro's.
The sale of the Nick-N-Willy's Pizza business assets is subject to the completion of Figaro's due diligence and obtaining financing, as well as the negotiation and execution of a definitive purchase and sale agreement.
The closing of the transaction is expected on or before Dec.28, 2011. World Famous is to receive a refundable deposit of $10,000, which will be applied to the purchase price on closing.
The company intends to use proceeds from the sale of the assets to retire certain debt obligations and to initiate new business.
World Famous will seek shareholder approval for the proposed transaction with Figaro's at its annual and special general meeting Dec. 15.
Figaro's Italian Pizza is a 30-year-old chain that includes 71 franchised outlets in nine U.S. states, Abu Dhabi, Dubai and Cyprus.
Figaro's stores, like Nick-N-Willy's, provide both baked and "take and bake" pizzas.
This will be Figaro's third acquisition in the past five years. In 2006, Figaro's acquired Sargo's Subs, a small chain of sandwich shops. In 2008, Figaro's acquired Schmizza International Inc., which franchises gourmet New York style pizzerias known as Pizza Schmizza. Twenty-five Pizza Schmizza's are in operation, concentrated in the Portland, Ore. Market.
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