Business
MTY enters into an agreement to acquire Casa Grecque
MTY enters into an agreement to acquire Casa Grecque Canada NewsWire MONTREAL, O...
About this update from Mty Food Group Inc.
[{"type":"text","content":"\n\n\n\nMTY enters into an agreement to acquire Casa Grecque\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONTREAL, Oct. 31, 2018\n\n\n\nMONTREAL, Oct. 31, 2018 /CNW Telbec/ - MTY Food Group Inc. (\"MTY\" or the \"Company\") (TSX: MTY) announced today that one of its wholly-owned subsidiaries has signed an agreement to acquire most of the assets of Casa Grecque (www.casagrecque.ca), a chain of bring-your-own-wine restaurants founded 38 years ago by brothers, Peter and Louis Berlemis.\nThe Casa Grecque network currently has 31 franchised restaurants in operation, all of which are located in Quebec, Canada. The network has generated over $45 million in system sales in 2017.  Assets acquired also include a central kitchen and a distribution center that service the Casa Grecque restaurants as well as some external customers.\nTotal consideration for the transaction is expected to be approximately $19.5 million plus the value of the inventory at closing, which is projected to be approximately $3 million.\nThe transaction is anticipated to close before the end of 2018 but remains subject to multiple conditions customary for a transaction of this nature. There is no assurance the transaction will be completed as described above, or at all, or that the anticipated closing date will materialize.\nThe acquisition of Casa Grecque will solidify MTY's position in casual dining and will complement the current offering in the bring-your-own-wine category, family type of restaurant.\nFollowing the closing of the transaction, MTY will continue to run the Casa Grecque concept from its current headquarters in Laval, Quebec, under the leadership of Peter Mardakis.\nFinancing\nTotal consideration for the transaction will be financed using MTY's cash on hand and existing credit facilities.\nNon‑IFRS Measures\nThis News Release makes reference to certain non‑IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar...