GRAND RAPIDS — Restaurant operator Meritage Hospitality Group Inc. has deals in place to acquire a total of 57 Wendy’s restaurants.
According to a statement, Meritage (OTCQX: MHGU) acquired a pair of Wendy’s restaurants in Virginia and signed three separate asset purchase agreements for another 55 Wendy’s locations in the Eastern U.S. and Midwest.
The deals, which are subject to due diligence and other approvals, are expected to close in the first quarter of 2018. Combined, the acquisitions should add more than $100 million in annual sales to the company, which expects them to be accretive to earnings.
“The consummation of these transactions is consistent with our stated growth plans and investment strategy of ‘profitable growth’ within the Wendy’s franchise system,” CEO Robert Schermer said in a statement.
Meritage plans to convert the restaurants to its operating and accounting platform and remodel the stores to Wendy’s new design protocol.
The company currently operates 253 restaurants in 12 states and employs 7,700 people.