MONCTON, NB, Nov. 29, 2013 /CNW Telbec/ - Imvescor Restaurant Group Inc. ("Imvescor" or the "Company") (TSX: IRG) announced today that a wholly owned subsidiary of Imvescor has acquired the manufacturing facility, customer relationships, the trademark ''Commensal'' as well as all associated retail products marketed under the Commensal brand. The Commensal revenues over the last 12 months were approximately $10.0 million.
The transaction was completed as an asset purchase without assumption of any of the previous owners pre-closing liabilities. The transaction was approved by the court monitoring the insolvency proceedings of Commensal SEC. The purchase price was approximately $4.2 million. IRG intends to build up Commensal's presence in the retail space, particularly in the fresh soup category, where Commensal occupies 80% of the market in Quebec.
In addition, the facility will allow IRG to over time produce food items for a number of products currently being produced by third parties. The plant will equally begin providing IRG's proprietary food items to all four of its restaurant brands: Bâton Rouge, Scores, Mikes and Pizza Delight.
Denis Richard, IRG's CEO said: "We are extremely excited about this opportunity as it will permit us to vertically integrate our operations under very attractive conditions. We had this objective in sight over the long term but the much lower cost of entry offered by the Commensal opportunity compelled us to accelerate our strategic objectives.
The ability to gain access to manufacturing margins will additionally permit us to service our franchisees with a continued focus on competitive pricing and high quality food items."
About Imvescor Restaurant Group Inc.
Headquartered in Moncton, New Brunswick, Imvescor Restaurant Group owns franchised and corporate stores throughout Canada, under four brands: Pizza Delight® operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes® and Scores® restaurants operate primarily in Quebec in the family and casual dining segments and the take-out and delivery segments. Bâton Rouge® operates in Quebec, Ontario, Alberta and Nova Scotia in the casual dining segment.
Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release regarding the Company, including, but not limited to, the Company's business objectives, estimates, outlook, strategies and priorities, and other statements that are not historical facts, are "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside the Company's control referenced in the Company's continuous disclosure filings which are available on SEDAR at www.sedar.com. Although the forward-looking statements contained herein are based upon what the Company believes to be reasonable assumptions on the date of this press release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The Company assumes no obligation to update such forward-looking statements to reflect new information, future events or otherwise, except as required by applicable securities laws.
SOURCE: Imvescor Restaurant Group Inc.
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