VANCOUVER — A&W Revenue Royalties Income Fund and A&W Food Services of Canada Inc. (A&W Food Services) have announced the successful closing of the strategic combination between the Fund and A&W Food Services to create a leading publicly traded growth-focused quick-service restaurant franchisor (A&W Food Services NewCo). A&W Food Services NewCo offers a compelling new investment opportunity supported by a more conventional capital structure that can be leveraged to finance growth initiatives. With this transaction complete, shareholders will have the opportunity to fully capitalize on the many catalysts driving this Canadian success story while continuing to benefit from the experience and track record of the current leadership team and attractive quarterly dividend.
“The creation of a new public QSR company marks an exciting step in our journey to unlock even greater restaurant success and bring the great taste of A&W to even more Canadians,” says Susan Senecal, president and CEO of A&W Food Services NewCo and the Fund. “The transaction will enable us to go forward as an even stronger company, positioned for long-term growth and value.”
The transaction received overwhelming support from the Fund’s unitholders at a special meeting held on Oct. 8, 2024 and received final court approval on Oct. 11, 2024.
As a result of the transaction, the fund units have been delisted from the Toronto Stock Exchange. The common shares of A&W Food Services NewCo began trading on the TSX under the symbol “AW” on Oct. 18, 2024.
