MONTREAL, April 13 /CNW Telbec/ - The Company is pleased to announce that its wholly-owned subsidiary MTY Tiki Ming Enterprises Inc. ("MTY") (TSX VENTURE:MTY) has entered into a binding agreement to purchase all of the issued shares of Country Style Food Services Holdings Inc. ("Country Style(TM)") www.countrystyle.com from certain private arm's length vendors (the "Vendors") for a total consideration to be paid in cash to the Vendors at closing. The closing is scheduled for May 1, 2009, subject to the completion of certain conditions.
Country Style(TM) is a quick service restaurant chain, which owns the intellectual property and franchising rights to the Country Style(TM) and BunsMaster(TM) operations. There are presently 114 Country Style(TM) traditional stores, and 360 Country Style(TM) non-traditional outlets, as well as 16 BunsMaster(TM) retail stores, all of which are franchised outlets with the exception of 4 company owned Country Style traditional stores. System-wide sales for Country Style(TM) were approximately $94 million for the last 12 months.
With the acquisition of Country Style(TM), the Company seizes the opportunity to strengthen its position and foothold in the Ontario quick service franchise industry and launches itself as a major player in the coffee and sandwich segment, and is well positioned to further growth in both office towers, and non-traditional stores. The acquisition of Country Style(TM) will complement and expand the current franchise business operations of the Company.
This acquisition will further add to the Company's portfolio diversity with targeted 12 months system-wide sales of over $435 million, with over 1,500 total outlets and 25 banners in operation.
On Behalf of the Board of Directors of MTY Food Group Inc.
Stanley Ma, Chairman of the Board
This news release was prepared by management who takes full responsibility for its contents. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE MTY Food Group Inc.
For further information: For further information: Jean-Francois Dube, Investor relations, MTY Food Group Inc., 1-450-226-8475, firstname.lastname@example.org; www.mtygroup.com