Fast-food company buys Mr. Sub for $23M cash
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Hey there, time traveller!
This article was published 19/08/2011 (5481 days ago), so information in it may no longer be current.
MONTREAL — MTY Food Group Inc. is extending its presence outside mall food courts –its familiar home turf — and sinking its teeth into the popular fast-food sandwich market with the acquisition of Mr. Submarine Ltd. for $23 million cash.
The Montreal-based franchisor and operator of various quick-service restaurants such as Thai Express, TacoTime and Sushi Shop, said Thursday the purchase is its biggest to date and will help it reach new customers.
“It does increase our presence outside the food court,” said Eric Lefebvre, vice-president of finance of MTY (TSX:MTY).
Subway, Quiznos and Tim Hortons, which also sell sandwiches, are Mr. Sub’s main competitors, Lefebvre said.
Mr. Sub, a privately owned 43-year-old company, is one of Canada’s best-known fast-food chains, with 335 stand-alone and mall food court restaurants across the country that are under franchise or operator agreements.
About 80 per cent of Mr. Sub’s restaurants are in Ontario, with the rest spread out in six other provinces, MTY said. The Mr. Sub outlets will expand MTY’s network to 2,070 restaurants.
It’s too soon to say if there will be any changes to Mr. Sub restaurants, Lefebvre said.
MTY said the acquisition of Mr. Sub is in line with its strategy to acquire profitable chains that diversify its food offerings and strengthen its market share. In fiscal year 2011, Toronto-based Mr. Sub generated sales of more than $100 million, it said.
The Mr. Sub acquisition is the second that MTY announced this week. The company said it will acquire restaurant chain Koryo Korean BBQ Franchise Corp. for $1.8 million in cash. Koryo has 20 mostly franchised restaurants in Alberta, British Columbia, Ontario, Quebec and Saskatchewan.
— The Canadian Press