MTY Tiki Ming Enterprises, a wholly-owned subsidiary of Canadian franchisor and operator of quick service restaurants MTY Food Group, has entered into a $45m binding agreement to acquire Extreme Brandz assets.
At the date of closing, Extreme Brandz is expected to have over 235 Extreme Pita and over 70 Mucho Burrito restaurants in operations in Canada and in the US, of which two are corporately-owned for each brand.
The PurBlendz concept, operated as an add-on to the Extreme Pita restaurants, is expected to be present in around 70 Extreme Pita restaurants at closing.
System wide sales in Extreme Brandz' most recent completed fiscal period were over $103m.
MTY CEO Stanley Ma stated that the company is delighted to acquire an option to purchase two brands with strong growth potential in both Canada and overseas markets.
"This will complement MTY's current portfolio not only in terms of offering to its customers, but also in terms of geographical location; the 40 stores in the United States will be MTY's first stores on American territory. The ice is now broken," explained Ma.
The agreement, which is currently subject to closing conditions and approvals, is scheduled to be closed by 17 September 2013.
