GRAND RAPIDS, Mich., Jan. 31, 2018 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today announced it has acquired 38 Wendy’s restaurants located in Connecticut and Massachusetts designated market areas. The Company funded the acquisition through a private placement of preferred stock, cash on hand and debt financing provided by a syndicate of banks led by City National Bank. The Company expects the 38 restaurants acquired to add approximately $75.0 million in annual sales and be accretive to earnings going forward.
“We are inspired by the opportunity to welcome new employees and guests into our newly acquired 38 Wendy’s restaurants in Connecticut and Massachusetts. We intend to immediately integrate each of restaurants into our customized predictive operating and financial suite, followed by an extensive remodeling program designed to modernize the Wendy’s restaurants and enhance the overall guest experience. The acquisition is consistent with the Company’s 5-year growth plan to expand our operating base up to 400 Wendy’s and 20 casual dining restaurants,” stated Chief Executive Officer, Robert Schermer, Jr.
Company 2018 Outlook: Strong Sales & Earnings Growth Ahead
The Company previously announced it has a pending agreement to acquire an additional 12 Wendy’s restaurants in the Mid-West. The transaction is subject to customary due diligence, standard approvals and scheduled to be completed during the quarter.
Meritage continues to distinguish itself as a leader and innovator in the quick service restaurant segment, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 297 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 9,000 employees. The Company has approximately 6.2 million (basic) common shares outstanding. The Company’s public filings can be viewed at www.otcqx.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.
SAFE HARBOR STATEMENT
Certain information in this news release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, constitutes forward-looking statements. Factors set forth in our Safe Harbor Statement, in addition to other possible factors not listed, could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company’s Safe Harbor Statement at http://www.meritagehospitality.com.
Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.
Source:Meritage Hospitality Group, Inc.