TSX Trading Symbol: "MTY"
MONTREAL, Nov. 1, 2011 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the
"Company") (TSX: MTY) announced today that pursuant to the binding
agreement announced on August 18, 2011, its wholly-owned subsidiary MTY
Tiki Ming Enterprises Inc. has completed the acquisition of Mr.
Submarine Limited and Mr. Submarine Realty Limited ("Mr. Sub"). Total
consideration of $23 million is to be paid from MTY's cash on hand.
Mr. Sub (www.mrsub.ca) has delivered fresh quality submarine sandwiches in Canada since 1968
with a focus on providing value for its customers. "By acquiring Mr.
Sub, MTY is adding a well-known quick-service brand that generations of
Canadians have enjoyed for over 40 years. The addition of Mr. Sub
provides tremendous strategic possibilities for MTY by further
diversifying MTY's brand portfolio and by considerably increasing our
presence on the street", said Stanley Ma, Chairman, President and CEO
At closing, there are 338 Mr. Sub outlets in operations, all of which
are either franchised or under operating agreements. The transaction
will bring MTY's annualized system sales to approx $650 million and its
network to 2,231 outlets in Canada, and throughout the Middle East and
North African (MENA) regions. This excludes the anticipated acquisition
of Koryo Korean BBQ.
In the weeks following the transaction, Mr. Sub's team will be relocated
to MTY's Ontario office in Richmond Hill. Mr. Ken Monteith, Sr.
Vice-President of Country Style, will expand his role and additionally
take the lead for Mr. Sub, along with current Mr. Sub senior
management, Mr. Michael Ford and Mr. Kurt Newman.
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 firstname.lastname@example.org or visits our website: www.mtygroup.com or visit SEDAR's website at www.sedar.com under the Company's name.