Imvescor Restaurant Group Inc. is pleased to announce that it has entered into a binding agreement to acquire Ben & Florentine, a leading franchisor in the breakfast and lunch category with over 40 locations across Quebec, Ontario and Manitoba.
It will be an asset transaction with total consideration of approximately $17.7 million payable at closing with an additional earn-out payment of up to $7.3 million payable in the first quarter of 2018 based upon the achievement of certain financial results driven principally by the successful opening of new restaurants.
Frank Hennessey, President and Chief Executive Officer of IRG said, “We are excited by the Ben & Florentine acquisition which complements IRG’s existing brands and consolidates IRG’s solid position in Quebec. This acquisition of a homegrown Quebec business is consistent with our strategic acquisition strategy to act upon attractive opportunities, complements our strategic plan initiated in 2015 and is an example of acquisitions we intend to continue to pursue. We expect this transaction to be immediately accretive to earnings, while creating a new growth oriented brand. Ben & Florentine has been great at converting system sales into EBITDA at an even better margin than IRG has achieved in the past. The purchase price represents a significant discount to our trading multiple.”
Lorne Cassoff, the founder and President of Ben & Florentine will continue to lead the brand and will join IRG’s executive team. “I’m proud of the great organization that we have built since 2009 with our franchisee partners by delivering authenticity and transparency to our customers every single day. We intend to pursue our growth strategy for the brand, and we look forward to joining the Imvescor family with the many new opportunities that this acquisition will provide for all stakeholders”.
December 20, 2016