US-based quick-service and casual dining restaurant Meritage Hospitality Group has agreed to acquire 57 Wendy’s outlets located across five states.
Both the firms have entered into three independent definitive asset purchase agreements to this effect.
According to Meritage, two of Wendy’s restaurants in Virginia have been purchased while the remaining 55 locations in the Eastern and Mid-Western US form part of the agreements.
Subjected to customary due diligence and standard approvals, the transaction is expected to be completed during the first quarter of 2018. Meritage expects over $100m in annual sales to be added to this transaction.
Meritage Hospitality Group CEO Robert Schermer, Jr said: “The consummation of these transactions is consistent with our stated growth plans and investment strategy of ‘profitable growth’ within Wendy’s franchise system.
“Upon closing we intend to immediately integrate each of these Wendy’s restaurants into our unique web-based operating and accounting platform, followed by an extensive remodelling programme designed to modernise Wendy’s restaurants and enhance the overall guest experience.”
Wendy’s is an American international fast-food restaurant chain located in Columbus, Ohio.
Meritage Hospitality Group has 253 restaurants in operation located in Arkansas, Florida, Georgia, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee and Virginia.
It is headquartered in Grand Rapids, Michigan, with approximately 7,700 employees and has approximately 6.1m (basic) outstanding common shares.