DIZZ group streamlines food franchises with €10 million notes issue

The DIZZ franchise powerhouse led by fashion entrepreneur Diane Izzo is issuing a €10 million convertible notes programme to acquire shares in the group’s food subsidiaries.

The D Foods Finance special purchase vehicle will be issuing a programme of €10 million in convertible notes in stepped phases, to professional investors in the form of €100,000 notes.

D Foods will be acquiring stakes in DIZZ subsidiaries operating food franchises, and which are also run by Izzo’s husband Karl, currently Malta’s ambassador to Montenegro.

The first part of the proceeds will be used to acquire €6.2 million in the companies’ shares, namely 49% of the DK Pascucci coffee house franchise, 53% of Xilema Limited, which holds the Yogorino franchise, 53.5% in DCAFFE Holding, holders of the Pastrocchio, Salad Box and Nespresso franchises, and 53.5% of D Kitchen Lab, a company distributing food products to the subsidiaries’ food franchises.

By fully acquiring the subsidiaries, D Foods Finance plc will fully own the companies that collectively operate the Pascucci, Pastrocchio, Yogorino, Salad Box and Nespresso brands in twelve establishments around Malta.

By the end of 2019, the company had six Pascucci cafés, generating €1.4 million revenue. DCAFFE is estimating annual revenues of €2.5 million from the Pastrocchio brand, €950,000 from the Salad Box brand, and €4.2 million revenue from the Nespresso brand. Xilema’s Yogorino two outlets and a forthcoming Paceville outlet, are projecting €600,000.