Meritage to Acquire 57 Wendy's Quick Service Restaurants in US.
12 December 2017 - Michigan, US-based restaurant operator Meritage Hospitality Group Inc. (OTCQX: MHGU) has acquired 57 US-based quick service restaurants in the Wendy's franchise system located in a five-state area, the company said.
Terms of the transaction were not disclosed.
Meritage acquired two Wendy's restaurants in Virginia, US and entered into three independent definitive asset purchase agreements to acquire a total of 55 Wendy's restaurants located in the Eastern and Midwestern US.
Meritage expects the 57 restaurants to add over USD 100m in annual sales and be accretive to earnings going forward. The transactions are subject to customary due diligence and standard approvals with closings scheduled to be completed during 1Q18.
Meritage said the transactions are consistent with its growth plans and investment strategy of profitable growth within the Wendy's franchise system.
Upon closing, Meritage said it intends to integrate each of these Wendy's restaurants into its web-based operating and accounting platform, followed by an extensive remodeling program designed to modernise the Wendy's restaurants and enhance the overall guest experience.
Meritage Hospitality Group has 253 restaurants in operation in the US and operates with a workforce of approximately 7,700 employees. The company has approximately 6.1m.
Target: 57 US quick service restaurants in the Wendy's franchise system
Buyer: Meritage Hospitality Group
Deal size in USD:
Type: Corporate Acquisition
Buyer advisor: , ,
Comment: Terms of the deal were not disclosed
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|Publication:||M & A Navigator|
|Date:||Dec 12, 2017|
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