Press release from CNW Group
MTY enters into an agreement to acquire the assets of SushiGo
Tuesday, April 30, 2013
MTY enters into an agreement to acquire the assets of SushiGo14:27 EDT Tuesday, April 30, 2013
TSX Trading Symbol: "MTY"
MONTREAL, April 30, 2013 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the "Company") (TSX: MTY), franchisor and operator of multiple concepts of quick service restaurants, announced today that its wholly-owned subsidiary MTY Tiki Ming Enterprises Inc. has entered into a binding agreement to acquire most of the assets of Gestion SushiGo - Sesame Inc. (www.sushigoexpress.ca), 9161-9379 Quebec Inc. and 9201-0560 Quebec Inc. for a total consideration of $1.05 million to be paid in cash.
The closing of the transaction is scheduled to happen on or before June 1, 2013 and remains subject to standard regulatory approvals and closing conditions. The transaction will be funded from MTY's cash on hand.
The transaction includes three (3) franchised stores and two (2) corporately-owned stores. All five (5) stores are in the Ottawa/Gatineau region and are street-front locations. During its last fiscal period, the SushiGo network generated system sales of approximately $2.3 million in Canada.
"Subsequent to this acquisition, our footprint on the sushi market is going to be more complete in western Quebec and eastern Ontario. The acquired stores occupy strategic locations in which the Company does not currently have a strong presence, and as such, this acquisition is a great strategic fit into our portfolio", commented Stanley Ma, CEO of MTY.
The transaction is in line with the Company strategy to acquire profitable chains that strengthen the Company's market share in the quick service food industry.
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@example.com, or visit our website: www.mtygroup.com or SEDAR's website at www.sedar.com under the Company's name.