EX-99.1
6
v083386_ex99-1.htm
Public Relations Contact:
Investor Relations Contact:
Susan Goodell
Jeffrey Goldberger
Warschawski
KCSA Worldwide
(410) 367-2700 ext. 25
(212) 896-1249
susan.goodell@warschawski.com
jgoldberger@kcsa.com
NEXCEN
BRANDS ACQUIRES PRETZEL TIME
®
AND
PRETZELMAKER
®
FRANCHISE CONCEPTS
Acquisitions
Will Bolster NexCen's Quick Service Restaurant ("QSR") Operating
Vertical
NEW
YORK, August 7, 2007
-- NexCen Brands, Inc. (Nasdaq: NEXC) ("NexCen") announced today that it has
acquired the assets of Pretzel Time Franchising, LLC ("Pretzel Time®")
and Pretzelmaker Franchising, LLC ("Pretzelmaker®"),
which are wholly owned subsidiaries of Mrs. Fields Famous Brands, LLC ("Mrs.
Fields"). The combined purchase price for the transaction is $29.4 million, and
consists of $22.1 million of cash, and NexCen common stock valued at
approximately $7.3 million. These transactions double the number of brands
in
NexCen's quick service restaurant (QSR) portfolio, which also includes the
premium, hand-mixed ice cream chains MaggieMoo's®
and Marble Slab Creamery®.
As
of June 30, 2007, Pretzel Time and Pretzelmaker had a combined 376 franchised
or
licensed units worldwide. Of those, 327 are in the United States, with the
remaining 49 international locations located in six countries. For the trailing
twelve months ended June 30, 2007, aggregate unaudited revenues for the Pretzel
Time and Pretzelmaker brands were approximately $6.4 million. NexCen estimates
that aggregate revenues for the two businesses for the full year 2007 will
be
approximately $6.7 million. Based upon the partial year of ownership, NexCen
expects to recognize approximately $2.7 million of revenue from the businesses
for the remainder of 2007. NexCen expects these transactions to be accretive
in
2007 and, after integration into NexCen's operations, to generate combined
operating margins of approximately 60%, consistent with NexCen's expectations
for its QSR franchising operations.
Commenting
on the acquisitions, Robert W. D'Loren, President and CEO of NexCen, stated,
"Pretzel Time and Pretzelmaker are representative of the types of acquisition
opportunities that NexCen has targeted to grow our QSR vertical and to increase
sales in our existing ice cream concepts. Our business model is based upon
leveraging synergistic relationships between our brands to deliver value to
our
stakeholders. The addition of these companies to our QSR portfolio provides
NexCen with an additional 376 doors for the delivery of quality branded
products, and broadens our franchise offering for interested franchise
investors".
1330
AVENUE OF THE AMERICAS,
34TH
FLOOR • NEW YORK, NEW YORK • 10019
PHONE:
212.277.1100 • FAX:
212.277.1160
WWW.NEXCENBRANDS.COM
Stephen
Russo, President and Chief Executive Officer of Mrs. Fields, added, "NexCen
Brands' acquisition of Pretzel Time and Pretzelmaker will enable Mrs. Fields to
focus on our core business strategy, with the comfort and confidence that
NexCen's franchise model will continue to build these brands. We'll be exploring
opportunities to invest in our remaining brand portfolio in accordance with
our
indenture requirements".
The
Company will discuss this transaction in further detail in its Q2 earnings
conference call scheduled for Friday August 10, 2007 at 9:00 am
EST.
About
NexCen Brands, Inc. (http://www.nexcenbrands.com)
NexCen
Brands, Inc. is the premier 21st century brand acquisition and management
company focused on assembling a diversified portfolio of intellectual property
(IP) centric companies operating in the consumer branded products and franchise
industries. The Company owns, licenses, franchises and markets a growing
portfolio of consumer and franchise brands including The Athlete's
Foot®,
Bill Blass®,
MaggieMoo's®,
Marble Slab Creamery®,
Pretzel Time®,
Pretzelmaker®
and Waverly®.
The Company licenses and franchises its brands to a network of leading
retailers, manufacturers and franchisees that touch every major segment of
retail distribution from the luxury market to the mass market in the U.S. and
in
over 50 countries around the world, and consists of more than 1,500 franchised
stores. NexCen, through its information technology (IT) and franchisee support
systems and advertising, marketing and public relations team, markets its brands
to continually drive greater consumer awareness and brand equity for each of
its
brands. NexCen touches nearly every aspect of a consumer's lifestyle from the
food they eat to the furnishings in their homes and the clothes and footwear
they purchase.
About
Pretzel Time
®
and Pretzelmaker®
Pretzel
Time®
introduced its famous soft pretzel in Trumbull, CT in October 1991. Since then,
Pretzel Time has grown to become one of the leaders in the soft pretzel
category, specializing in offering steaming hot, fresh-baked pretzels twisted
by
our trained pretzel rollers, pretzel dogs, freshly squeezed lemonade, and cold
beverages. As of June 30, 2007, there were 191 Pretzel Time stores located
in 30
states domestically and 4 international locations in Trinidad, Panama, Jordan,
and Guatemala. Also founded in 1991, Pretzelmaker®
has been offering fresh, hand-twisted pretzels, pretzel dogs, freshly squeezed
lemonade, and cold beverages for more than 15 years. As of June 30, 2007 there
were 136 Pretzelmaker stores located in 33 states domestically as well as 45
international stores in Canada and Guam. Under Mrs. Fields, Pretzelmaker and
Pretzel Time were headquartered in Salt Lake City, UT.
Forward-Looking
Statement Disclosure
This
press release contains "forward-looking statements", as such term is used in
the
Securities Exchange Act of 1934, as amended. Such forward-looking statements
include those regarding expectations for the development of the new IP strategy
business, and expectations for the performance of Pretzel Time and Pretzelmaker.
When used herein, the words "anticipate", "believe", "estimate", "intend,"
"may", "will", "expect" and similar expressions as they relate to the Company
or
its management are intended to identify such forward-looking statements.
Forward-looking statements are based on current expectations and assumptions,
which are subject to risks and uncertainties. They are not guarantees of future
performance or results. The Company's actual results, performance or
achievements could differ materially from the results expressed in, or implied
by, these forward-looking statements. Factors that could cause or contribute
to
such differences include: (1) we may not be successful in implementing our
business strategy, (2) we depend on the success of our licensees and franchisees
for future growth (3) we may not be successful in operating or expanding either
Pretzel Time or Pretzelmaker or integrating these acquisitions into our IP
business strategy, (4) our marketing and franchising concepts and programs
may
not result in increased revenues, expansion of our franchise network or
increased value for our trademarks and franchised brands, and (5) other factors
discussed in our filings with the Securities and Exchange Commission. NexCen
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
For
more
information about these transactions, or about NexCen please visit our website
at www.nexcenbrands.com.
#
#
#

EX - 99 . 1 6 v083386 _ ex99 - 1 . htm Public Relations Contact : Investor Relations Contact : Susan Goodell Jeffrey Goldberger Warschawski KCSA Worldwide ( 410 ) 367 - 2700 ext . 25 ( 212 ) 896 - 1249 susan.goodell@warschawski.com jgoldberger@kcsa.com NEXCEN BRANDS ACQUIRES PRETZEL TIME ® AND PRETZELMAKER ® FRANCHISE CONCEPTS Acquisitions Will Bolster NexCen 's Quick Service Restaurant ( " QSR " ) Operating Vertical NEW YORK , August 7 , 2007 -- NexCen Brands , Inc . ( Nasdaq : NEXC ) ( " NexCen " ) announced today that it has acquired the assets of Pretzel Time Franchising , LLC ( " Pretzel Time ® " ) and Pretzelmaker Franchising , LLC ( " Pretzelmaker ® " ) , which are wholly owned subsidiaries of Mrs . Fields Famous Brands , LLC ( " Mrs . Fields " ) . The combined purchase price for the transaction is $ 29.4 million , and consists of $ 22.1 million of cash , and NexCen common stock valued at approximately $ 7.3 million . These transactions double the number of brands in NexCen 's quick service restaurant ( QSR ) portfolio , which also includes the premium , hand - mixed ice cream chains MaggieMoo 's ® and Marble Slab Creamery ® . As of June 30 , 2007 , Pretzel Time and Pretzelmaker had a combined 376 franchised or licensed units worldwide . Of those , 327 are in the United States , with the remaining 49 international locations located in six countries . For the trailing twelve months ended June 30 , 2007 , aggregate unaudited revenues for the Pretzel Time and Pretzelmaker brands were approximately $ 6.4 million . NexCen estimates that aggregate revenues for the two businesses for the full year 2007 will be approximately $ 6.7 million . Based upon the partial year of ownership , NexCen expects to recognize approximately $ 2.7 million of revenue from the businesses for the remainder of 2007 . NexCen expects these transactions to be accretive in 2007 and , after integration into NexCen 's operations , to generate combined operating margins of approximately 60 % , consistent with NexCen 's expectations for its QSR franchising operations . Commenting on the acquisitions , Robert W . D'Loren , President and CEO of NexCen , stated , " Pretzel Time and Pretzelmaker are representative of the types of acquisition opportunities that NexCen has targeted to grow our QSR vertical and to increase sales in our existing ice cream concepts . Our business model is based upon leveraging synergistic relationships between our brands to deliver value to our stakeholders . The addition of these companies to our QSR portfolio provides NexCen with an additional 376 doors for the delivery of quality branded products , and broadens our franchise offering for interested franchise investors " . 1330 AVENUE OF THE AMERICAS , 34TH FLOOR • NEW YORK , NEW YORK • 10019 PHONE : 212 . 277 . 1100 • FAX : 212 . 277 . 1160 WWW.NEXCENBRANDS.COM Stephen Russo , President and Chief Executive Officer of Mrs . Fields , added , " NexCen Brands ' acquisition of Pretzel Time and Pretzelmaker will enable Mrs . Fields to focus on our core business strategy , with the comfort and confidence that NexCen 's franchise model will continue to build these brands . We ' ll be exploring opportunities to invest in our remaining brand portfolio in accordance with our indenture requirements " . The Company will discuss this transaction in further detail in its Q2 earnings conference call scheduled for Friday August 10 , 2007 at 9 : 00 am EST . About NexCen Brands , Inc . ( http://www.nexcenbrands.com ) NexCen Brands , Inc . is the premier 21st century brand acquisition and management company focused on assembling a diversified portfolio of intellectual property ( IP ) centric companies operating in the consumer branded products and franchise industries . The Company owns , licenses , franchises and markets a growing portfolio of consumer and franchise brands including The Athlete 's Foot ® , Bill Blass ® , MaggieMoo 's ® , Marble Slab Creamery ® , Pretzel Time ® , Pretzelmaker ® and Waverly ® . The Company licenses and franchises its brands to a network of leading retailers , manufacturers and franchisees that touch every major segment of retail distribution from the luxury market to the mass market in the U . S . and in over 50 countries around the world , and consists of more than 1,500 franchised stores . NexCen , through its information technology ( IT ) and franchisee support systems and advertising , marketing and public relations team , markets its brands to continually drive greater consumer awareness and brand equity for each of its brands . NexCen touches nearly every aspect of a consumer 's lifestyle from the food they eat to the furnishings in their homes and the clothes and footwear they purchase . About Pretzel Time ® and Pretzelmaker ® Pretzel Time ® introduced its famous soft pretzel in Trumbull , CT in October 1991 . Since then , Pretzel Time has grown to become one of the leaders in the soft pretzel category , specializing in offering steaming hot , fresh - baked pretzels twisted by our trained pretzel rollers , pretzel dogs , freshly squeezed lemonade , and cold beverages . As of June 30 , 2007 , there were 191 Pretzel Time stores located in 30 states domestically and 4 international locations in Trinidad , Panama , Jordan , and Guatemala . Also founded in 1991 , Pretzelmaker ® has been offering fresh , hand - twisted pretzels , pretzel dogs , freshly squeezed lemonade , and cold beverages for more than 15 years . As of June 30 , 2007 there were 136 Pretzelmaker stores located in 33 states domestically as well as 45 international stores in Canada and Guam . Under Mrs . Fields , Pretzelmaker and Pretzel Time were headquartered in Salt Lake City , UT . Forward - Looking Statement Disclosure This press release contains " forward - looking statements " , as such term is used in the Securities Exchange Act of 1934 , as amended . Such forward - looking statements include those regarding expectations for the development of the new IP strategy business , and expectations for the performance of Pretzel Time and Pretzelmaker . When used herein , the words " anticipate " , " believe " , " estimate " , " intend , " " may " , " will " , " expect " and similar expressions as they relate to the Company or its management are intended to identify such forward - looking statements . Forward - looking statements are based on current expectations and assumptions , which are subject to risks and uncertainties . They are not guarantees of future performance or results . The Company 's actual results , performance or achievements could differ materially from the results expressed in , or implied by , these forward - looking statements . Factors that could cause or contribute to such differences include : ( 1 ) we may not be successful in implementing our business strategy , ( 2 ) we depend on the success of our licensees and franchisees for future growth ( 3 ) we may not be successful in operating or expanding either Pretzel Time or Pretzelmaker or integrating these acquisitions into our IP business strategy , ( 4 ) our marketing and franchising concepts and programs may not result in increased revenues , expansion of our franchise network or increased value for our trademarks and franchised brands , and ( 5 ) other factors discussed in our filings with the Securities and Exchange Commission . NexCen undertakes no obligation to update or revise any forward - looking statements , whether as a result of new information , future events or otherwise . For more information about these transactions , or about NexCen please visit our website at www.nexcenbrands.com . # # #