MTY completes the acquisition of Thai Zone
TSX Trading Symbol: "MTY"
MONTREAL, Oct. 1, 2013 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the "Company") (TSX: MTY) announced today that pursuant to the announcement made on August, 2013, its wholly-owned subsidiary MTY Tiki Ming Enterprises Inc. has completed the acquisition of 80% of the assets of 9199-0465 Québec Inc. and Alimentation ThaïZone Inc. ("Thaï Zone") (www.thaizone.ca), with the balance of the ownership remaining with the seven founders of Thaï Zone. The total consideration for MTY's 80% share in the business was $17.7M and was paid from MTY'S cash on hand and available credit facilities. The transaction is effective September 30, 2013.
At closing, the chain operates 25 stores and 3 mobile restaurants in the province of Quebec, all of which are franchised. Two of the founders, Pascal Leclerc and Marie-Christine Martel, will join the newly formed company and will be responsible for the future development of the brand and for the day-to-day operations. The brand will be managed from MTY's Ville St-Laurent offices.
"The acquisition of ThaïZone is in line with MTY's strategy to consolidate the quick service restaurant industry and be the strongest player in Canada for ethnic food", said Stanley Ma, CEO of MTY. "This new and dynamic brand, along with the people behind it, will bring a lot of energy to MTY. We are very optimistic for the future of this concept".
Certain information in this News Release may constitute "forward-looking" information that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Company or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this News Release, this information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan" and other terminology. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this News Release. Except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances. Additional information is available in the Company's Management Discussion and Analysis, which can be found on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
MTY Food Group Inc.
Stanley Ma, Chairman, President & CEO
SOURCE MTY FOOD GROUP INC.For further information:
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