TSX Trading Symbol: "MTY"
MONTREAL, Dec. 1, 2017 /PRNewswire/ - MTY Food Group
Inc. ("MTY" or the "Company") (TSX: MTY) announced today that
pursuant to the announcement made on November 14, 2017, it has acquired the totality
of the limited liability company interests in CB Franchise Systems,
LLC ("The Counter") (www.TheCounter.com), Built Franchise Systems,
LLC ("Built") (www.BuiltCustomBurgers.com) and certain of their
affiliates.
The total consideration for the transaction is approximately
US$24.6 million, including a
US$0.9 million working capital
adjustment which remains subject to post-closing
adjustments. A total of US$22.3
million was paid on closing and US$2.3 million was retained as holdback on the
transaction. The consideration paid on closing was paid in cash,
financed from MTY's cash on hand.
At closing, the combined networks operate 41 franchised and 3
corporately-operated restaurants.
Mrs. April Fogle, under the
leadership of Jeff Smit, will be
leading the The Counter and Built operations following the closing
of the transaction. MTY expects to move the operations of the
two brands to its US headquarters in Scottsdale, Arizona.
Forward looking information
Certain information in this News Release constitutes
"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 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" or
variations of such words and phrases, or by the use of words or
phrases which state that certain actions, events or results may,
could, would, or might occur or be achieved. This
forward-looking information reflects current expectations and
assumptions regarding future events and operating performance and
speaks only as of the date of this News
Release. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information.
A description of additional assumptions used to develop such
forward-looking information and a description of additional risk
factors that may cause actual results to differ materially from
forward-looking information can be found in MTY's disclosure
documents on the SEDAR website at www.sedar.com. Readers are
further cautioned not to place undue reliance on forward-looking
information as there can be no assurance that the plans, intentions
or expectations upon which they are placed will
occur. Forward-looking information contained in this News
Release is expressly qualified by this cautionary statement. Except
as required by law, the Company assumes no obligation to update or
revise forward-looking information to reflect new events or
circumstances. Financial outlooks contained in this News
Release were approved by management of the Company on December 1, 2017. The purpose of this
information is to provide a potential financial outlook of the
combined entity and this information may not be appropriate for
other purposes. 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
For more information visit our website: www.mtygroup.com or
SEDAR's website at www.sedar.com under the Company's name.
SOURCE MTY Food Group Inc.