Press release from CNW Group
MTY ENTERS INTO AN AGREEMENT TO ACQUIRE JUGO JUICE
Wednesday, April 27, 2011
MTY ENTERS INTO AN AGREEMENT TO ACQUIRE JUGO JUICE09:03 EDT Wednesday, April 27, 2011TSX Trading Symbol: MTYMONTREAL, 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 space.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 hand.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 industry.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 & CEOFor further information: Jean-Francois Dube, Investor Relations at 1-450-226-8475 or by email at firstname.lastname@example.org or visits our website: www.mtygroup.com or visit SEDAR's website at www.sedar.com under the Company's name.