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Meritage
Reports Acquisition of 20 Wendy’s Restaurants in Atlanta, Georgia
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Grand
Rapids, MI – September 2014 / Newsmaker Alert / Meritage
Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant
operators, announced it has completed the acquisition of 20 Wendy’s restaurants
located in Atlanta, Georgia.
The
Wendy’s restaurants were acquired from a franchisee and are contiguous
to the Company’s existing Wendy’s operations in Atlanta. Commenting on
the acquisition Robert E. Schermer, Jr. CEO stated, “This transaction represents
a case-model opportunity of our stated strategy to enhance shareholder
value through consolidation and development in the Wendy’s franchise system.
We intend to immediately install our web-based back of house operating
and accounting systems to add real-time efficiencies at the restaurant
level.”
The
Company estimates the acquisition will add $25.6 million in annual sales
and be highly accretive to earnings and EBITDA. The transaction was funded
through a combination of cash on hand and an acquisition credit facility
with First Franchise Capital Corporation, its primary financial partner.
“No additional equity securities were required to be issued related to
the acquisition”, added Mr. Schermer.
The
Company plans to temporarily close the 20 restaurant locations for two
days of equipment replacement and system upgrades while transitioning to
the Meritage operating protocol. Following the restaurant re-openings,
the Company will launch a building renovation cycle termed “Image Activation”
in a majority of the acquired 20 Wendy’s restaurants. Image Activation
is the new Wendy’s system design standard, including major interior and
exterior restaurant upgrades, aimed at creating “A Cut-Above” guest experience.
Meritage
has completed 12 acquisitions within the Wendy’s franchise system and continues
to make significant investments into the brand. The Company owns and operates
141 quick service and casual dining restaurants in six states including
Florida, Georgia, Michigan, North and South Carolina and Virginia.
Headquartered
in Grand Rapids, MI the Company employs a workforce of approximately 4,000
people. The Company’s public filings can be viewed at www.otcqx.com
under the stock symbol MHGU, or at the Company’s website, www.meritagehospitality.com.
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Safe
Harbor Statement
Certain
information in this new release, particularly information regarding future
economic performance and finances, and plans, expectations and objectives
of management, constitutes forward-looking statements. Factors set forth
in our Safe Harbor Statement, in addition to other possible factors not
listed, could affect the Company’s actual results and cause such results
to differ materially from those expressed in forward-looking statements.
Please review the Company’s Safe Harbor Statement at www.meritagehospitality.com.
Contact:
Robert
E. Schermer, Jr. CEO
Meritage
Hospitality Group
616-776-2600,
Ext. 1012 |
