GRAND RAPIDS, Mich., June 08, 2016 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today announced it has completed the acquisition of 8 Wendy’s restaurants located in the Oklahoma City designated market area. The Company also reported it has signed a definitive agreement to acquire an additional 10 Wendy’s in the Oklahoma City designated market area, with the transaction closing planned for late summer.
Chief Executive Officer Robert Schermer, Jr., stated, “We are very excited about the opportunity to expand our footprint west of the Mississippi river with a portfolio of Wendy’s restaurants which have a long operating history and a market area with new restaurant growth opportunity. This transaction represents our fifteenth acquisition in the past five years and is consistent with our past acquisition underwriting criteria. We intend to immediately begin the integration of these 8 Wendy’s restaurants into our web-based operating & accounting systems platform with 10 additional Wendy’s to follow later this summer.”
The Company expects the 8 restaurant acquisition to add approximately $11.5 million in annual sales and be accretive to earnings. The transaction was funded with a combination of cash-on-hand and debt financing provided by Mercantile Bank.
The Company continues to make significant restaurant investments in 2016 with the renovation of 18 existing Wendy’s locations utilizing the new image activation design standards and developing new casual dining restaurants. The Company also reported that it has withdrawn from a previous purchase agreement to acquire 19 casual dining restaurants and continues to seek Wendy’s and casual dining acquisition opportunities where the Company believes it can add value using its web-based operating and accounting systems.
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 173 restaurants in operation located in Florida, Georgia, Michigan, North Carolina, South Carolina, Ohio, Oklahoma and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 5,500 employees. The Company has approximately 5,706,173 (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 new 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.