MTY to pay $7.9M for companies that operate Manchu Wok, other restaurants

MONTREAL – Fast food franchisor and operator MTY Food Group Inc. (TSX: MTY) is buying the assets of a group of companies that own and operate the Manchu Wok, Wasabi Grill & Noodle and SenseAsian restaurants.

MTY says it will pay $7.9 million from cash on hand to acquire the business, which currently has 133 stores in its operations, 114 of which are franchised and 19 corporately owned. During its most recent completed fiscal year, the network generated approximately $95 million in system sales.

Of the 133 stores, 51 are located in the United States, including five corporately owned locations.

“Manchu Wok is an iconic brand in the ethnic food category and has a long history of success” MTY CEO Stanley Ma said in announcing the deal Thursday.

“We are very proud and excited to have the opportunity to add Manchu Wok, as well as Wasabi Grill & Noddle and SenseAsian, to our portfolio of brands. The addition of Manchu Wok will further increase our presence in Canadian food courts and will add to MTY’s nascent franchise network in the United States.”

Closing is expected by mid-December, after which the operations of the franchisor will be relocated in MTY’s offices in Richmond Hill, north of Toronto.