MONTREAL, Canada – MTY Food Group Inc. (“MTY” or the “Company”) (TSX: MTY) announced on February 15, 2018, that one of its wholly-owned subsidiaries has signed an agreement to acquire the assets of Timothy’s World Coffee (“Timothy’s”) (www.timothyscafes.com) and Mmmuffins (www.mmmuffins.com), from Threecaf Brands, Canada, Inc., a subsidiary of Le Duff America, for an estimated consideration of $1.675 million.
Under the terms of the agreement, MTY will acquire the current 28 franchised and 7 corporately owned Timothy’s locations in Canada, 2 licensed Timothy’s locations in United States, 3 Mmmuffins and 2 co-branded franchised locations in Canada and the license to operate and franchise coffee shops under the tradename Timothy’s which is owned by Keurig Canada. During the past 12 months, the Timothy’s and Mmmuffins networks have generated sales of approximately $15.6 million.
The transaction is expected to close in April of 2018 and remains subject to multiple conditions, including standard regulatory approvals and other 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.
MTY expects to move the Timothy’s and Mmmuffins operations to its office located in Richmond Hill, Ontario.