Restaurant company acquiring 69 locations
A local restaurant company expects to grow its annual sales by $90 million by purchasing 69 restaurants across five states.
Grand Rapids-based Meritage Hospitality Group said today it has entered into three independent definitive asset purchase agreements to acquire the Wendy’s restaurants, which are located in Midwest and Mid-Atlantic states.
The three transactions are scheduled to be completed during the first and second quarters of 2017.
The transactions are subject to customary due diligence and standard approvals.
Meritage Hospitality Group operates 181 restaurants, with locations in Florida, Georgia, Michigan, North Carolina, South Carolina, Ohio, Oklahoma and Virginia.
Its brands include Wendy’s, Twisted Rooster, Freighters, Crooked Goose and Wheelhouse.
Robert Schermer Jr., Meritage CEO, said the three transactions are consistent with the company’s stated investment strategy of “profitable growth” within the Wendy’s franchise system.
“We intend to systematically integrate each of these Wendy’s restaurants into our unique web-based operating and accounting platform, followed by a long-term remodeling program designed to modernize the Wendy’s restaurants and enhance the guest experience,” Schermer said.
He said Meritage looks forward to “welcoming the addition of 2,100 new employees to Meritage this spring” through the acquisitions.
The company said initial 2017 financial targets will be updated at the end of the second quarter to reflect the impact of the acquisitions, which it anticipates will be accretive to sales and earnings growth.
Meritage (OTCQX: MHGU) has about 5.9 million common shares outstanding.