TSX Trading Symbol: "MTY"
MONTREAL, Nov. 11, 2011 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the
"Company") (TSX: MTY) announced today that pursuant to the binding
agreement announced on August 15, 2011, its wholly-owned subsidiary MTY
Tiki Ming Enterprises Inc. has completed the acquisition of most assets
of Koryo Korean BBQ Franchise Corporation, 7137940 Canada Inc. and
6992684 Canada Inc. ("Koryo") for a total consideration of $1.8 million
and to be paid from MTY's cash on hand.
Since 1997, Koryo (www.koryofranchise.com) has provided its customers with a unique culinary experience combined
with high quality foods that are free of preservatives and artificial
flavours. The Koryo chain currently operates 20 stores, 19 of which are
franchised or under operating agreement and 1 company owned store, with
annual sales system sales of approximately $8 million. At the close of
this transaction, the addition of the Koryo chain will increase MTY's
total network to 2,251 units in Canada and throughout the Middle East
and Northern Africa regions.
"The acquisition of Koryo will enable MTY to accelerate its growth in
the Korean food segment by adding key locations in areas where our
home-grown Korean quick-service chain, Kim Chi, is not present. This
largely includes the provinces of Alberta, British Colombia and
Saskatchewan. It will also provide an opportunity to capitalize on both
Korean food banners' strengths while further increasing our position as
a dominant player in mall food courts throughout Canada", said Stanley
Ma, Chairman, President and CEO of MTY.
Mr Jin Lee, founder of Koryo, will remain with the Company for an
initial period of three years.
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:
please contact Jean-Francois Dube, Investor Relations at 1-450-226-8475 or by email at email@example.com or visits our website: www.mtygroup.com or visit SEDAR's website at www.sedar.com under the Company's name.