Business
MTY completes the acquisition of Madisons New York Grill & Bar
TSX Trading Symbol: "MTY" MONTREAL , July 21, 2014 /CNW Telbec/ - MTY Food Group Inc...
About this update from Mty Food Group Inc.
[{"type":"text","content":"\n\n\nTSX Trading Symbol: \"MTY\"\n\n\nMONTREAL, July 21, 2014 /CNW Telbec/ - MTY Food Group Inc. (\"MTY\" or the\n \"Company\") (TSX: MTY), franchisor and operator of multiple concepts of\n quick service restaurants, today announced that pursuant to the\n announcement made on April 10, 2014, it has completed the acquisition\n of the Canadian assets of Madisons New York Grill & Bar (\"Madisons\")  www.madisonsnyc.com for a total consideration of $12.9M.\n\n\nThe acquisition was made via a newly created subsidiary, which is 90%\n owned by MTY's wholly-owned subsidiary, MTY Tiki Ming Enterprises Inc. \n The purchase price will mostly be financed by a new banking facility\n provided by Bank of Montreal, which will be guaranteed by MTY.  The\n transaction is effective July 18, 2014.\n\n\nAt closing, the chain operates 14 franchised stores in the province of\n Quebec.  Sales for the Madisons system were $40M for the 2013 calendar\n year.  Following the transaction, the operations of the franchisor will\n be relocated in MTY's existing offices in Ville St-Laurent, Quebec. \n Gilles Pepin was named vice-president of the brand and will be in\n charge of its operations and development.  Mr. Pepin will own 10% of\n the shares of the newly created company.\n\n\nThe operations of Madisons in the United States are excluded from the\n transaction.\n\n\nCertain information in this News Release may constitute\n \"forward-looking\" information that involves known and unknown risks,\n uncertainties, future expectations and other factors which may cause\n the actual results, performance or achievements of the Company or\n industry results, to be materially different from any future results,\n performance or achievements expressed or implied by such\n forward-looking information. When used in this News Release, this\n information may include words such as \"anticipate\", \"estimate\", \"may\",\n \"will\", \"expect\", \"believe\", \"plan\" and other terminology. This\n information reflects current expectations regarding future events and\n operating performance and speaks only as of the date of this News\n Release. Except as required by law, we assume no obligation to update\n or revise forward-looking information to reflect new events or\n circumstances. Additional information is available in the Company's\n M...