MTY Food acquires Country Style Food Services
Published:07-May-2009
By Datamonitor staff writer
Combined companies to capitalize on synergies such as cross-selling opportunities and procurement savings
MTY Food Group has completed the acquisition of Country Style Food Services Holdings, a coffee and baked goods franchisor in the Ontario quick service restaurant sector, for an all cash consideration of $16.5m, payable on closing and funded through MTY's cash reserves.
According to MTY, the combined companies will capitalize on the synergies that exist, such as realizing possible cross-selling opportunities between existing banners, procurement savings and centralization of certain administrative functions. MTY expects the transaction to be accretive to earnings per share on a pro forma basis barring any synergies.
Rick Martens, current president of Country Style, will continue in his present role to lead the team and to ensure the continued achievement of Country Style's business plans and objectives.
Stanley Ma, president and CEO of MTY, said: "Despite MTY's diverse portfolio, we have always wanted to add a strong coffee and baked goods chain to the mix. When the opportunity to acquire Country Style presented itself, we knew this would be the right fit. The Country Style team has successfully rebranded its image and has built a strong and profitable operation over the past 24 months. Both companies share similar values, and are committed to being leaders in the quick service franchise industry."
