Retail Food Group (RFG) has acquired Gloria Jean’s Coffee for $163.5 million.

RFG said the global coffee chain had long been a target for the company, and adds to its current coffee businesses, Cafe2U, and The Coffee Guy.

Gloria Jean’s has 358 stores in Australia, 87 in the United States, and franchises in 40 other countries. Gloria Jean’s also operates a wholesale coffee business.

RFG will pay $153.5 million in cash plus $10 million in its own shares, plus up to a further $16.4 million depending on the company’s performance.

It will will raise $55 million to help fund its purchase through the issue of new shares to institutional and sophisticated shareholders.

The company has also increased its senior debt facility with National Australia Bank, from $135 million to $253 million.

Tony Alford, RFG CEO, said the acquisition transforms RFG into a “global franchising powerhouse”, providing the company with access to numerous international markets and new revenue platforms.

Gloria Jean’s executive chairman, Nabi Saleh, will remain with the business for a minimum period of two years post completion.

The transaction is expected to be settled by December.