MONTREAL — Imvescor Restaurant Group Inc. (IRG) has entered into a binding definitive agreement to sell substantially all of the assets of its wholly owned subsidiary, Groupe Commensal Inc., to an affiliate of Pasta Romana Foods Inc. for an aggregate total sum of approximately $4.2 million payable upon closing.
According to Frank Hennessey, president and CEO of IRG, during Q1 2017, management committed to a plan to sell the Commensal operations, believing the divestiture is consistent with IRG’s desire to focus on its core restaurant-franchising business and to remain an asset-light entity.
“Since we announced our strategic plan in April 2015, we have made steady progress,” he says. “With the recent announcements of the acquisition of Ben & Florentine and the divesture of Commensal, we are well prepared to grow our asset-light business model, with a renewed focus on our core business. The staff and management of Commensal have been a great team to work with and they continue to produce an exceptional product. We know that under the guidance of the Pasta Romana group, Commensal will continue to grow. We look forward to a seamless transition for our customers, suppliers and partners.”
This divesture, which is expected to close prior to the end of Q2 2017, is subject to certain customary closing conditions and purchase price adjustments. Proceeds from this divesture will provide additional funding, allowing IRG to pursue its strategic-acquisition strategy of brands that complement its existing portfolio.