Business
MTY enters into an agreement to acquire the assets of Madisons New York Grill & Bar
TSX Trading Symbol: "MTY" MONTREAL , April 10, 2014 /CNW Telbec/ - MTY Food Group In...
About this update from Mty Food Group Inc.
[{"type":"text","content":"\n\n\nTSX Trading Symbol: \"MTY\"\n\n\nMONTREAL, April 10, 2014 /CNW Telbec/ - MTY Food Group Inc. (\"MTY\" or\n the \"Company\") (TSX: MTY), franchisor and operator of multiple concepts\n of 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 some of the assets of a group of companies that\n owns and operate the Madisons New York Grill & Bar concept in Canada\n (\"Madisons\")  www.madisonsnyc.com, for a total consideration of $13 million.\n\n\nThe acquisition will be made via a new subsidiary to be formed.  MTY\n will own 90% of that subsidiary, while the other 10% will be owned by\n the new Vice President of the brand, Gilles Pépin. The purchase price\n will mostly be financed by a new banking facility, which will be\n guaranteed by MTY.\n\n\nAt the date of closing, Madisons is expected to have 14 franchised\n restaurants in operations in Canada. Sales for the Madisons system were\n $40M for the 2013 calendar year. Following the transaction, the\n operations of the franchisor will be relocated in MTY's existing\n offices in Ville St-Laurent, Quebec.\n\n\n\"We are pleased to make our entry in the casual dining segment through a\n brand as reputable as Madisons\", said Stanley Ma, CEO of MTY. \"This\n opens the door to a segment of the foodservice that has been very\n strong in the last few years and that is expected to continue its\n strong performance in the future.\"\n\n\nThe closing of the transaction is scheduled to happen on or before June\n 10th, 2014 and remains subject to several closing conditions as well as to\n standard regulatory approvals. The operations of Madisons in the United\n States are excluded from the 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...