Business
MTY enters into an agreement to acquire the assets of Café Dépôt, Sushi Man, Muffin Plus and Fabrika
TSX Trading Symbol: "MTY" MONTREAL , July 8, 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 8, 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, announced today that its wholly-owned\n subsidiary MTY Tiki Ming Enterprises Inc. has entered into a binding\n agreement to acquire the assets of a group of companies that owns and\n operate the Café Dépôt (www.cafedepot.com), Sushi Man (www.lesushiman.com), Muffin Plus (www.muffinplus.ca) and Fabrika concepts.  The Company also acquires two buildings in the\n process.  The total consideration for the transaction is expected to be\n $14.8M, paid from MTY's cash on hand and available credit facilities.\n\n\nAt the date of closing, it is expected that there will be 102 stores in\n operations, 90 of which are franchised and 12 corporately-owned.  All\n of the stores except one are in the province of Quebec.  During the\n 2013 calendar year, the 102 stores generated approximately $42M in\n system sales.\n\n\n\"We are very proud to acquire this portfolio of brands, each of which\n enjoys strong brand recognition in the markets they serve\" said Stanley\n Ma, CEO of MTY.  \"We expect that the 102 stores will be a good fit with\n MTY's existing network.  The combination of those strong brands with\n MTY's expertise will create exciting synergies.\"\n\n\nThe two buildings are located in Laval and Montreal, Quebec.  The Laval\n premises are the home of a Café Dépôt restaurant.  The Montreal\n building currently houses the headquarters of the franchisor.\n\n\nThe closing of the transaction is scheduled to happen on or before\n October 15th, 2014 and remains subject to several closing conditions as well as to\n standard regulatory approvals.  Following the closing of the\n transaction, the operations of the franchisor will be relocated in\n MTY's offices in Ville St-Laurent.  One of the vendors, Maria Elisii,\n and key employees will remain with the Company following 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 Compa...