Montreal-based MTY Food Group Inc. has purchased Mr. Submarine Ltd. for $23 million cash.
MTY, the franchisor and operator of various quick-service restaurants such as Thai Express, TacoTime and Sushi Shop, said the purchase is its biggest to date and will help it reach new customers.
"It does increase our presence outside the food court [the main location of MTY restaurants]," said Eric Lefebvre, vice-president of finance of MTY. The deal closed in late summer.
Mr. Sub, a privately owned 43-year-old company has 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 year. 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, Saskatchewan, Ontario and Quebec.
from Western Investor November 2011
