Canadian franchisor and quick service restaurant operator MTY Food Group has signed a definitive combination agreement with Imvescor Restaurant Group, which owns franchised and corporate stores throughout Canada, for approximately $248m.
As per the agreement, MTY will acquire all the outstanding Imvescor shares. The deal offers Imvescor shareholders an aggregate consideration of approximately 20% in cash and approximately 80% in MTY common shares.
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The deal will bring together MTY banners such as America’s Taco Shop, Thai Express, Vanellis and Manchu Wok with Imvescor’s Baton Rouge, Pizza Delight Scores and Ben & Florentine restaurants.
The combination will create a portfolio of over 5,700 stores under 75 brands and approximately $2.9bn in system sales received from restaurant guests at both corporate and franchise restaurants including take-out and delivery customer orders.
MTY chairman of the board of directors, president and CEO Stanley Ma said: “The combination of the two companies’ portfolios and expertise will produce tremendous opportunities for North American growth.”
Imvescor chairman of the board of directors François-Xavier Seigneur said: “The board of directors is unanimous in its recommendation that this transaction is in the best interests of all shareholders. We reached this conclusion following a detailed review and rigorous process that explored the strategic alternatives available to us. We urge shareholders to join us as owners of a stronger, more diversified company with an established track record of value creation and an exciting future ahead.”
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By GlobalDataThe transaction is expected to complete in the first half of 2018 following the receipt of regulatory and Imvescor shareholder approvals and satisfying customary closing conditions.
