A subsidiary of Canadian franchisor and operator of multiple concepts of restaurants MTY Food Group has acquired substantially most of the assets of South Street Burger for approximately $5.1m.
Signed in December last year, the deal is expected to strengthen MTY’s position in the fast casual restaurants segment, as well as complement its current offering in the gourmet burger category.
Of the total consideration, the company paid approximately $4.1m on closing, financed from MTY’s cash on hand and existing credit facilities, assumed $0.2m in net liabilities, and held back $0.8m.
South Street Burger currently operates 24 franchised restaurants and 13 corporate restaurants including one location in Dubai, UAE.
During the singing of the deal, MTY Food Group CEO Eric Lefebvre said: “MTY is proud to add another dynamic brand to its portfolio. South St. Burger has great growth potential for the future and will solidify MTY’s presence in the gourmet burger market.”
MTY will relocate the operations of South Street Burger to its Ontario offices in Richmond Hill and Oakville. MTY’s subsidiary The Works Gourmet Burger Bistro president and CEO Bruce Miller will the business.
In December last year, MTY Food Group completed the $22.35m acquisition of bring-your-own-wine restaurant chain Casa Grecque’s assets through its subsidiary.
Nearly $20.91m of the total consideration was paid by the company on closing and assumed $0.19m in net liabilities. It held back $1.25m.