GRAND RAPIDS — Fast food and casual restaurant operator Meritage Hospitality Group Inc. (OTCQX: MHGU) said yesterday it has initiated a string of acquisitions that will continue to grow its operations.
The Grand Rapids-based Meritage signed three independent asset purchase agreements to acquire 69 Wendy’s locations throughout the Midwest and Mid-Atlantic regions, according to a statement.
“The consummation of these three transactions will represent the completion of nineteen Wendy’s acquisitions in the past eight years and are consistent with our stated investment strategy of ‘profitable growth’ within the Wendy’s franchise system,” Meritage Hospitality CEO Robert Schermer stated.
The acquisitions are still subject to due diligence and are expected to be completed in the first and second quarters of this year.
The company plans to acquire all the locations for $111.8 million, a Meritage spokesperson said in an email to MiBiz. The company is raising $10.5 million in equity from qualified investors to support the acquisitions, according to a regulatory filing.
Meritage Hospitality currently operates 181 restaurants in eight states, with the majority being Wendy’s locations. Additionally, the company owns and operates a growing amount of casual sit-down restaurants, including The Wheelhouse in downtown Grand Rapids.
Executives previously told MiBiz they expected generate $230 million in sales for 2016, but the company has yet to release its latest earnings.
Editor's note: This story has been updated to include financial details about the transaction.