VANCOUVER, Feb. 23, 2018 /CNW/ - A&W Food Services of
Canada Inc. ("Food Services") and A&W Revenue Royalties
Income Fund (the "Fund") (TSX: AW.UN), announced today that
A&W of Canada Inc. ("A&W Canada"), the parent
company of Food Services, has completed a reorganization (the
"Reorganization") to provide liquidity for, and accommodate
the individual estate planning purposes of, some of its long
standing shareholders. As part of the Reorganization, several
shareholders of A&W Canada have collectively sold a significant
minority, indirect ownership interest in Food Services to funds
managed by TorQuest Partners. A&W Canada will retain a 100%
interest in all the securities exchangeable into units of the Fund
(the "Royalty Securities") currently owned by Food Services
and any additional Royalty Securities acquired by Food Services as
a result of the addition of new stores to the royalty pool in
respect of which royalties are paid by Food Services to the Fund
until December 31, 2022.
The Reorganization does not constitute a change of control of
Food Services, as existing shareholders will continue to maintain
majority control of Food Services. There will also be no change in
management or operations of the Food Services' business in
connection with the Reorganization. The current shareholders of
A&W Canada will retain the right to elect three of the five
members of the board of directors of Food Services. Michael Hollend and Eric
Berke, have been appointed as members of the board of
directors of Food Services replacing Axel
Rehkatsch and Bill
Levine.
As noted, this Reorganization has enabled A&W Canada to
realize liquidity for certain of its long-standing shareholders for
their individual estate planning purposes, while welcoming a
well-respected Canadian fund manager to Food Services' shareholding
group.
The A&W Revenue Royalties Income Fund is a limited
purpose trust established to invest in A&W Trade Marks Inc.,
which through its interest in A&W Trade Marks Limited
Partnership (the Partnership), owns the A&W trade-marks used in
the A&W quick service restaurant business in Canada. The
A&W trade-marks comprise some of the best-known brand names in
the Canadian foodservice industry. In return for licensing
Food Services to use its trade-marks, Trade Marks (through the
Partnership) receives royalties equal to 3% of the sales of A&W
restaurants in the Royalty Pool.
A&W Food Services of Canada Inc. is 100 per cent
Canadian owned and is one of the strongest brand names in the
Canadian foodservice industry. A&W is the nation's second
largest hamburger restaurant company with 920 locations
coast-to-coast. A&W Restaurants feature famous trade-marked
menu items such as The Burger Family®, Chubby Chicken®, and A&W
Root Beer®. For more information, please visit www.aw.ca.
For additional information about TorQuest Partners see
their website at http://www.torquest.com.
SOURCE A&W Revenue Royalties Income Fund