Mad Butcher returns to Leitch family
posted on 20th December 2017
Veritas Investments is to sell its Mad Butcher franchisor business to chief executive and former owner Michael Morton and his partner Julie Leitch - daughter of company founder Sir Peter Leitch - for $8 million. This is less than a quarter of what Mr Morton sold it to Veritas for in a reverse listing in 2013, when Veritas paid $40 million for the business - $20 million in cash and $20 million in Veritas shares. Since then, a number of stores have closed or been taken over by the company after experiencing difficult trading conditions and stiff competition from supermarkets. The sale is subject to the approval of Veritas shareholders, which will be sought at a special shareholders' meeting to be held in early 2018.
Veritas hired Bancorp Corporate Finance to manage a sale process for the meat franchisor business and attracted three bids. Morton declared his interest in October and was excluded from board discussions on the sale.
'The independent directors fully support the proposed Mad Butcher sale transaction and recommend that shareholders vote in favour of the resolution to be put to them for the proposed Mad Butcher sale transaction at the special shareholders meeting,' chair Tim Cook said.