TSX Trading Symbol: MTY
MONTREAL, April 27 /CNW Telbec/ - MTY Food Group Inc. (TSX: MTY) ("MTY"
or the "Company"), franchisor and operator of 1,741 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 Jugo Juice International Inc., Jugo Juice Canada Inc.,
Jugo Juice Western Canada Inc. ("Jugo Juice") for an expected total
consideration of $15.45 million to be paid in cash to the Vendors.
The purchase price includes a 1,250 sq.f. of condo office located in
Calgary, Alberta, representing 25% of Jugo Juice's current total office
The closing of the transaction is scheduled to happen on or before June
30, 2011 and remains subject to standard regulatory approvals and
closing conditions. The transaction will be funded from MTY's cash on
With a total of 133 outlets in operation, of which 132 are franchised,
located in seven provinces, system sales for 2010 of over $36.4 million
and strong brand equity created by a commitment to premium quality
smoothies and a distinctive brand image, the acquisition of Jugo Juice
enables MTY to establish itself as a leader in the smoothie industry in
Canada and reinforce the Company's presence in western Canada, where
the majority of Jugo Juice outlets are located.
The acquisition of Jugo Juice is in line with our strategy to acquire
profitable chains that diversify the Company's range of offering and
strengthen the Company's market share in the quick service food
Jugo Juice's founders' services will be retained for a period of 90 days
from closing, with the majority of the current employees of Jugo Juice
to be retained with the Company from closing and to operate out of Jugo
Juice's current Calgary office.
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 on the Company 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:
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.