Max’s to integrate North Am operations to growing portfolio

MANILA, Philippines - Max’s Group Inc. (MGI), the resulting merger between Pancake House Inc. and the Max’s Group of Companies, is eyeing to add the franchise holder of Max’s restaurant in North America to its growing integrated portfolio.

The move will allow MGI to consolidate all revenues generated from franchising operations of Max’s outlets in North America.

In a regulatory filing yesterday, MGI said it has recommended to its board of directors the inclusion of eMax’s LLC  in the integration of Max’s and Pancake House groups.

eMax, an entity registered in Colorado, USA primarily engaged in the granting of franchises for the development and operation of restaurants under the Max’s brand name within the North American territory, holds the franchise and intellectual property rights for Max’s restaurants in the region.

 “eMax is currently held by certain principal shareholders of the company. Such an acquisition will allow all shareholders of MGI to benefit from the expected growth of the Max’s restaurant business in North America, consistent with the company’s strategy and rationale for the integration,” MGI said.

MGI said eMax’s reported sales as of end-2013 stood at $630,782 or approximately P28.23 million.

The firm said the transaction is expected to be submitted for the approval of the respective boards of MGI and eMax in the fourth quarter of the year “upon the availability of third party valuation opinions.”

 “When the transaction terms (including timing) are finalized and approved by the board of directors of MGI, the corresponding disclosures will be made,” the company said.

Max’s Group was folded into Pancake House a couple of months ago in a P4-billion reverse acquisition that cemented the group’s position as the largest casual dining chain in the Philippines.

The integration created the country’s leading chained full service restaurant group with a combined market share of 28.3 percent in terms of sales as of end-2013.

MGI intends to raise up to P4.6 billion from its proposed sale of common shares through a follow-on offering, proceeds of which will be used to finance capital expenditures for the expansion of the stores and commissaries, pay working capital and for other general corporate purposes.

It plans to sell up to 300.136 million common shares consisting of up to 34.106 million new shares, 204.638 million issued shares held and to be sold by certain wholly-owned subsidiaries, and 61.391 million issued shares to be sold by certain selling shareholders.

Max’s Group and its subsidiaries presently have a network of 498 outlets nationwide and 27 outlets abroad composed of brands Max’s, Pancake House, Yellow Cab, Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Max’s Corner Bakery, Maple, Sizzlin’ Steak and Le Coeur de France.

The group also operates in the Philippines international food brands such as Krispy Kreme, Jamba Juice and The Chicken Rice Shop.