MTY completes the acquisition of South Street Burger
MTY Food Group Inc. ("MTY" or the "Company") (TSX: MTY) announced today
that pursuant to the announcement made on December 11, 2018, one of its
wholly-owned subsidiaries has acquired substantially most of the assets
of South Street Burger.
The total consideration for the transaction is
approximately $5.1 million, subject to customary post-closing
adjustments. A total of approximately $4.1 million was paid on closing,
financed from MTY's cash on hand and existing credit facilities, while $0.2 million in net liabilities was assumed and $0.8 million was held back..
The South Street Burger network currently has 24 franchised
restaurants and 13 corporate restaurants in operation, one of which is
located in Dubai, UAE and all other restaurants are located in Canada.
The acquisition of South Street Burger will solidify MTY's position
in the fast casual restaurants segment and will complement the company's
current offering in the gourmet burger category.
MTY intends to relocate the operations of South Street Burger to its Ontario offices located in Richmond Hill and Oakville, under the leadership of Bruce Miller.