MTY Food Group Inc. has reached an agreement to acquire 80 percent of the assets ofHouston Avenue Bar & GrillandIndustria Pizzeria + Bar. The transaction is expected to close within the next two weeks and remains subject to a variety of closing conditions and regulatory approvals.
Houston has nine franchised locations in operation and one under construction. Industria has three franchised locations in operation and two more under construction. Combined, the two concepts generated approximately$38 millionin sales during the last 12 months, per a release announcing the deal.
The cash consideration paid at closing for the 80 percent acquired by MTY is expected to be approximately$13.0 million. The consideration will be adjusted 24 months from closing based on the performance of three of the recently opened restaurants and of the three restaurants that are currently under construction, per a release announcing the deal. The amount of the earn-out will also serve as a holdback for the transaction.
The transaction is expected to close within 15 days of this announcement and remains subject to multiple conditions, including standard regulatory approvals and other closing conditions customary for a transaction of this nature. There is no assurance the transaction will be completed as described above or at all, or that the anticipated closing date will materialize.
Raimondo Messina,Antonino MessinaandRoger Francis, the current owners ofHoustonand Industria, will continue to lead the two brands following the transaction. MTY expects to relocate the offices ofHoustonand Industria to its headquarters inSt-Laurent, Québec.