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MTY Closes Acquisition of US Burger Chains Counter Custom Burgers, Built Custom Burgers
Wednesday 06 December 2017

6 December 2017 - Canada-based restaurant franchiser MTY Food Group Inc. (TSX: MTY) has acquired the totality of the limited liability company interests in US-based CB Franchise Systems, LLC, Built Franchise Systems, LLC and certain of their affiliates, the company said.

CB Franchise Systems runs Counter Custom Burgers while Built Franchise runs Built Custom Burgers. Both are US burger chains.

The total consideration for the transaction is approximately USD 24.6m, including a USD 0.9m working capital adjustment which remains subject to post-closing adjustments. 

A total of USD 22.3m was paid on closing and USD 2.3m was retained as holdback on the transaction. The consideration paid on closing was paid in cash, financed from MTY's cash on hand.

At closing, the combined networks operate 41 franchised and three corporately-operated restaurants.

April Fogle, under a leadership of Jeff Smit, will be leading the The Counter and Built operations following the closing of the transaction. 

MTY expects to move the operations of the two brands to its US headquarters in Scottsdale, Arizona.
Date Published: 06/12/2017
Target: CB Franchise Systems, Built Franchise Systems
Country: USA
Deal Size: 24.6m (USD)
Sector: Hotels/Restaurants/Casinos/Catering
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: MTY Food Group