TSX Trading Symbol: "MTY"
MONTREAL, May 28, 2013 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the
"Company") (TSX: MTY), franchisor and operator of multiple concepts of
quick service restaurants, announced today that its wholly-owned
subsidiary MTY Tiki Ming Enterprises Inc. has entered into a binding
agreement to acquire most of the assets of a group of companies from
the 3 co-founders, Mr. Alex Rechichi, Mr. Mark Rechichi, and Mr. Sean
Black, who own and operate the Extreme Pita, PurBlendz and Mucho
Burrito concepts ("Extreme Brandz") www.extremebrandz.com, for a total consideration of $45 million, making it the biggest
acquisition in MTY's history. It will be paid from MTY's cash on hand
and available line of credit.
At the date of closing, Extreme Brandz is expected to have over 235
Extreme Pita and over 70 Mucho Burrito restaurants in operations in
Canada and in the United States, of which two are corporately-owned for
each brand. The PurBlendz concept, which is operated as an add-on to
the Extreme Pita restaurants, is expected to be present in
approximately 70 Extreme Pita restaurants at closing. System wide
sales in Extreme Brandz' most recent completed fiscal period were over
Extreme Brandz currently has Canadian offices in Toronto and Calgary.
In addition, it has offices in Scottsdale Arizona, which currently
support approximately 40 stores and oversee the operations and the
development of the brands in the United States. Employees in Toronto
are expected to be relocated to MTY's existing office in Richmond Hill,
while the Calgary and Scottsdale offices are expected to remain as is.
"We are very excited to have the opportunity to acquire two brands that
enjoy such strong brand equity and that have a significant growth
potential in Canada and outside of our borders. This will complement
MTY's current portfolio not only in terms of offering to its customers,
but also in terms of geographical location; the 40 stores in the United
States will be MTY's first stores on American territory. The ice is
now broken." said Stanley Ma, CEO of MTY.
The closing of the transaction is scheduled to happen on or before
September 17, 2013 and remains subject to several closing conditions as
well as to standard regulatory approvals. Following the transaction,
Mr. Sean Black, co-founder of Extreme Brandz, will remain with the
Company as Chief Development Officer.
"This is an exciting time for MTY and I am honored to have the
opportunity to join the team and help develop the incredible potential
of the Company. I believe this strategic acquisition by MTY will be
very good for the Extreme Brandz franchisees as well as the MTY
shareholders." said Mr. Black.
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:
For more information please contact Eric Lefebvre, Chief Financial Officer at 1-514-336-8885 or by email at email@example.com, or visit our website: www.mtygroup.com or SEDAR's website at www.sedar.com under the Company's name.