TSX Trading Symbol: "MTY"
MONTREAL, July 8, 2014 /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 the assets of a group of companies that owns and
operate the Café Dépôt (www.cafedepot.com), Sushi Man (www.lesushiman.com), Muffin Plus (www.muffinplus.ca) and Fabrika concepts. The Company also acquires two buildings in the
process. The total consideration for the transaction is expected to be
$14.8M, paid from MTY's cash on hand and available credit facilities.
At the date of closing, it is expected that there will be 102 stores in
operations, 90 of which are franchised and 12 corporately-owned. All
of the stores except one are in the province of Quebec. During the
2013 calendar year, the 102 stores generated approximately $42M in
"We are very proud to acquire this portfolio of brands, each of which
enjoys strong brand recognition in the markets they serve" said Stanley
Ma, CEO of MTY. "We expect that the 102 stores will be a good fit with
MTY's existing network. The combination of those strong brands with
MTY's expertise will create exciting synergies."
The two buildings are located in Laval and Montreal, Quebec. The Laval
premises are the home of a Café Dépôt restaurant. The Montreal
building currently houses the headquarters of the franchisor.
The closing of the transaction is scheduled to happen on or before
October 15th, 2014 and remains subject to several closing conditions as well as to
standard regulatory approvals. Following the closing of the
transaction, the operations of the franchisor will be relocated in
MTY's offices in Ville St-Laurent. One of the vendors, Maria Elisii,
and key employees will remain with the Company following the
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.