MTY Food acquires Country Style Food Services

…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.”

Food Business Review
May 7, 2009

MTY Food acquires Country Style Food Services
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."

http://retail.food-business-review.com/news/mty_food_acquires_country_style_food_services_070509


Brought to you by WikidFranchise.org

Risks: Buying efficiencies never make it to franchisees, Franchisees have no say on new brand, Franchisor owns more than one system (subsidizes dog from cash cow), Mergers and acquisitions, Multi-tradename franchisors are often the most ruthless, New franchisor brings new false hope, New franchisor may be nastier than the old one, New franchisor means worse deal, No franchisor support, Only 3 ways out: resell to next loser, independence & be sued or abandon and go bankrupt, Predatory franchise lending, Rebranding usually hides real objective, Renting a business causes problems down the road, Sold to dodge legal actions, Sunk costs: franchisee's trapped capital keeps them chained to treadmill, Canada, 20090507 MTY Food

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License