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SPAGHETTI WAREHOUSE TO ACQUIRE FRANCHISE SYSTEM OF OLD SPAGHETTI FACTORY (CANADA) LTD

 SPAGHETTI WAREHOUSE TO ACQUIRE FRANCHISE SYSTEM OF
 OLD SPAGHETTI FACTORY (CANADA) LTD
 GARLAND, Texas, June 11 /PRNewswire/ -- Spaghetti Warehouse, Inc. (NYSE: SWH) announced today that it has entered into a letter of intent with Peter and Heather Buckley of Vancouver, British Columbia and Peter and Patti Hnatiw of Toronto, Ontario to acquire 100 percent of two corporations known as Old Spaghetti Factory (Canada) Limited and Old Spaghetti Factory (Western) Limited.
 These corporations own the trademark rights to Old Spaghetti Factory within Canada and serve as franchiser for five Old Spaghetti Factory restaurants within Canada (Toronto, Ontario; Vancouver and New Westminster, British Columbia; Edmonton, Alberta; and Winnipeg, Manitoba). These entities have no connection with the U.S. company know as OSF International which operates restaurants under the name of Old Spaghetti Factory both within and outside of the United States, but not in Canada. The acquisition will be made in exchange for cash of $4.5 million Canadian (approximately $3.77 million U.S.). The closing of the transaction is subject to the negotiation and execution of a definitive agreement, completion of due diligence reviews and the satisfactory resolution of certain other issues.
 Louis P. Neeb, president of SWH, said, "The acquisition is a good strategic fit because of the concepts' similarities." He added that Spaghetti Warehouse, Inc. plans to develop additional company-owned and franchised Old Spaghetti Factory restaurants within Canada. "We will maintain the Canadian operation as a separate, wholly-owned subsidiary with no change to its present concept, decor, menu or operating style," Neeb said. Peter Buckley will become president of the Canadian company and will maintain executive offices in Vancouver, British Columbia.
 Spaghetti Warehouse, Inc. presently operates 24 restaurants in 14 states under the name of The Spaghetti Warehouse. It plans to open one additional restaurant in the United States by the end of the current fiscal year which ends July 4, 1992 and present plans for the opening of eight additional restaurants during the next fiscal year.
 -0- 6/11/92
 /CONTACT: Louis P. Neeb, president, or William B. Rea Jr., vice president-finance, both of Spaghetti Warehouse, Inc., 214-226-6000/
 (SWH) CO: Spaghetti Warehouse, Inc. ST: Texas IN: LEI SU: TNM


TQ -- NY064 -- 9308 06/11/92 14:34 EDT
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Publication:PR Newswire
Date:Jun 11, 1992
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