TSX Trading Symbol: "MTY"
MONTREAL, Sept. 25, 2013 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the "Company") (TSX: MTY) announced today that pursuant to the announcement made on May 28, 2013, its wholly-owned subsidiary MTY Tiki Ming Enterprises Inc. has completed the acquisition of the assets of Extreme Pita, PurBlendz and Mucho Burrito ("Extreme Brandz") www.extremebrandz.com for a consideration of $45 million, to be paid from MTY's cash on hand. The transaction is effective September 24th, 2013.
At closing, the chain operates 305 stores, including five corporately-owned stores. The transaction will bring the MTY network to over 2,500 outlets, generating system sales in excess of $800 million on an annualized basis. It will also represent MTY's first steps in the United States, where Extreme Brandz currently operates approximately 40 franchised stores from its Scottsdale, Arizona office.
"The addition of Extreme Pita and Mucho Burrito provides tremendous strategic possibilities for MTY by further diversifying its brand portfolio and as a result increasing our offer to potential investors as well as to landlords", said Mr. Stanley Ma, CEO of MTY. "This is the biggest acquisition in MTY's history. We are extremely excited to have the opportunity to acquire two young and dynamic brands with a proven track record and a solid, committed and talented team. We are very confident about the growth potential the two brands have in both Canada and internationally".
In the weeks following the transaction, part of Extreme Brandz' team will be relocated to MTY's Ontario office in Richmond Hill, while the teams located in Calgary and Scottsdale will remain in the current premises. Mr. Sean Black, co-founder of Extreme Brandz, will remain with the Company as Chief Development Officer and will be based in the Richmond Hill office.
MTY plans to convert some of the current PurBlendz stores into Jugo Juice in the months following the closing of the acquisition.
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 protected], or visit our website: www.mtygroup.com or SEDAR's website at www.sedar.com under the Company's name.