MONTREAL, April 30, 2019 /CNW Telbec/ - MTY Food Group
Inc. ("MTY" or the "Company") (TSX: MTY) announced today that one
of its wholly-owned subsidiaries has signed an agreement to acquire
the assets of Allô! Mon Coco (https://allomoncoco.com/amc/), a
rapidly growing chain of gourmet breakfast and lunch
restaurants.
The Allô! Mon Coco network currently has 39 franchised
restaurants in operation, 38 of which are located in the province
of Quebec and 1 in the Province of
Ontario. The network has generated
approximately $57 million in system
sales in the last 12 months.
Eric Lefebvre, CEO of MTY, said:
"MTY is very excited to have the opportunity to add another young,
dynamic and distinctive breakfast chain to its portfolio. Allô! Mon
Coco has had great success in the past and it has a great potential
for further growth in the future."
The transaction is anticipated to close within the next 45 days
but remains subject to multiple conditions customary for a
transaction of this nature. There is no assurance the transaction
will be completed as described above, or at all, or that the
anticipated closing date will materialize.
The assets acquired include the trademark for the world except
the USA. As part of the agreement, MTY obtains a right of
first refusal should the owners of the trademark for the
USA decide to dispose of it in the
future.
The current President of Allô! Mon Coco, Tom Bountis, will be staying with MTY for a
period of at least 12 months.
Mr. Billy Vourakis and Mr.
Robert Brumer acted as agents for
the owners of Allô! Mon Coco.
Financing
Total consideration for the transaction will be financed using
MTY's cash on hand and existing credit facilities.
Non‑IFRS Measures
This News Release makes reference to certain non‑IFRS measures.
These measures are not recognized measures under IFRS, do not have
a standardized meaning prescribed by IFRS and are therefore
unlikely to be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional
information to complement those IFRS measures by providing further
understanding of the Company's results of operations from
management's perspective. Accordingly, they should not be
considered in isolation nor as a substitute for analysis of the
Company's financial information reported under IFRS. The Company
uses non-IFRS measures including "System Sales" to provide
investors with supplemental measures of its operating performance
and thus highlight trends in its core business that may not
otherwise be apparent when relying solely on IFRS financial
measures. The Company also believes that securities analysts,
investors and other interested parties frequently use non-IFRS
measures in the evaluation of issuers. The Company's management
also uses non-IFRS measures in order to facilitate operating
performance comparisons from period to period, to prepare annual
operating budgets, and to determine components of management
compensation.
"System Sales" represents the net sales received from restaurant
guests at both corporate and franchise restaurants including
take-out and delivery customer orders. System Sales includes sales
from both established restaurants as well as new restaurants.
Management believes System Sales provides meaningful information to
investors regarding the size of MTY's restaurant network, the total
market share of the Company's brands and the overall financial
performance of its brands and restaurant owner base, which
ultimately impacts MTY's consolidated financial performance.
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. In particular, this News Release contains
forward-looking information regarding: the completion of the
acquisition, the potential closing date of the acquisition and the
potential impact of the acquisition on the Company's future
operations; opportunities, growth and expansion; the suitability of
the acquisition by the Company; the effect of the acquisition on
Allô! Mon Coco stakeholders; the potential retention of Allô! Mon
Coco management team; the expected EBITDA, revenue, system sales
and potential growth of the combined entity; potential future
acquisition opportunities; and the continuing payment of dividends
by the Company. 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.
These assumptions include, but are not limited
to: currency exchange rates used to derive Canadian
dollar expectations; market acceptance of the acquisition; the
satisfactory fulfilment of all of the conditions precedent to the
acquisition; the receipt of all required approvals and consents
including regulatory, TSX, shareholder and any other approvals;
acceptable financing to complete the acquisition; future results of
the Allô! Mon Coco business and operations meeting or exceeding
historical results; the success of the integration of the
operations and management team with the Company's operations and
business; and market acceptance of potential future acquisitions by
the Company. 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. Such risks and other
factors may include, but are not limited to: currency exchange
rates, general business, economic, competitive, political, capital
market and social conditions and uncertainties; the intensity of
competitive activity, and the resulting impact on our ability to
attract customers' disposable income; our ability to secure
advantageous locations and renew our existing leases at sustainable
rates; the arrival of foreign concepts; our ability to attract new
franchisees; changes in customer tastes, demographic trends and in
the attractiveness of our concepts, traffic patterns, occupancy
cost and occupancy level of malls and office towers; the level of
consumer confidence and spending and the demand for, and prices of,
our products; our ability to implement our strategies and plans in
order to produce the expected benefits; events affecting the
ability of third-party suppliers to provide to us essential
products and services; labour availability and cost or the loss of
key individuals; stock market volatility; operational constraints
and the event of the occurrence of epidemics, pandemics and other
health risks; delay or failure to receive board or regulatory
approvals; changes in legislation affecting the Company. Expected
EBITDA, revenue, system sales and growth could vary due
to fluctuations in currency exchange rates.
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 the 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 April 26, 2019. 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.
_____________________________________
Eric Lefebvre, Chief Executive Officer
SOURCE MTY Food Group Inc.