Mr. Sub's parent company enters into an agreement to acquire U.S. burger chains
MONTREAL -- The parent company of Mr. Sub, Thai Express, Country Style and others (MTY Food Group Inc.) announced that one of its wholly-owned subsidiaries has signed an agreement to acquire all of the limited liability company interests in CB Franchise Systems, LLC (The Counter Custom Burgers), Built Franchise Systems, LLC (Built Custom Burgers) and certain of their affiliates.
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Stanley Ma, Chairman of the Board and Chief Executive Officer of MTY, said: "Since the acquisition of Kahala Brands in July 2016, MTY Food Group Inc. has been seeking potential additions to its strong portfolio of brands. The Counter and Built fit that perfectly, offering trendy hamburgers and other craveable foods to uncompromising customers, focusing on superior quality and spot-on execution, creating memorable experiences for its guests."
The Counter Custom Burgers and Built Custom Burgers networks currently combine for 41 franchised locations and 3 corporate-owned locations. Of those 44 restaurants, 34 are located in the United States, one is located in Canada and nine are located overseas. In the last 12 months, the combined networks generated over US$81 million in system sales.
The acquisition of The Counter Custom Burgers and Built Custom Burgers represents another major milestone for MTY Food Group Inc. as it solidifies its presence in the United States and confirms MTY's appetite for good quality acquisition opportunities.
Following the closing of the transaction, the head office of The Counter Custom Burgers and Built Custom Burgers will be moved from its current location in Culver City, California to MTY's office in Scottsdale, Arizona.
The agreement is binding but remains subject to multiple closing conditions customary for a transaction of this nature.
Total consideration for the transaction will be financed using MTY's cash on hand and existing credit facilities.
The closing of the transaction is expected to occur in December 2017. However, there is no assurance the transaction will be completed on such timeline, or at all.
SOURCE MTY Food Group Inc.
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