Press release from CNW Group
MTY ENTERS INTO AN AGREEMENT TO ACQUIRE GROUPE SUSHI-TAXI
Wednesday, April 27, 2011
TSX Trading Symbol: MTY
MONTREAL, April 27 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the "Company") (TSX: MTY), 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 9193-9298 Quebec Inc. ("Sushi-Taxi"), Sushi-Taxi Maître Franchiseur Inc. ("Maitre Franchiseur") and 9182-7386 Quebec Inc. for an expected total consideration of $5.775 million to be paid in cash at closing.
The closing of the transaction is scheduled to be on or before May 31st, 2011 and subject to standard regulatory approvals and closing conditions. The transaction will be funded from MTY's cash on hand.
With 12 stores, and annual system wide sales of approximately $8.5 million, Sushi Taxi is a well known sushi chain, with all stores located in the province of Quebec, eight of which are corporate-owned, and four are franchised, with a distinctive image, solid reputation for quality and freshness, and an efficient on-line ordering system for delivery, the acquisition of Sushi-Taxi represents a good strategic addition to the Company's portfolio.
This acquisition is in line with our strategy to acquire profitable chains that diversify the Company's range of offering and strengthen the Company's sushi market share in the province of Quebec.
To ensure a smooth transaction, Sushi Taxi's founder will be retained for a period of 30 days from closing, and the majority of the current employees of Sushi Taxi will be continued with the Company.
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
For 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.