The Spectra Group of Great Restaurants Inc.
TSX : SPA
TSX : SPA.A

The Spectra Group of Great Restaurants Inc.

November 24, 2006 11:37 ET

Spectra to Sell the Bread Garden Brand and Creekside Custom Foods

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 24, 2006) - The Board of Directors of the Spectra Group of Great Restaurants Inc. (Spectra) (TSX:SPA)(TSX:SPA.A) announces that it has entered into an Asset Purchase Agreement for the sale of Spectra's Bread Garden and Creekside businesses to Premium Brands Income Fund, based out of Richmond, B.C., in an all cash transaction valued at $4,000,000, plus the assumption of certain working capital assets and liabilities.

The Spectra Board believes this is an excellent opportunity for Spectra's shareholders to realize full value for the Bread Garden and Creekside businesses. The transaction is expected to close on December 10, 2006. It is anticipated that a portion of the net proceeds of the transaction will be paid out to Spectra shareholders by way of a special dividend.

Premium Brands owns a broad range of leading branded specialty food businesses with manufacturing and distribution facilities located in British Columbia, Alberta, Saskatchewan, Manitoba and Washington. In addition, the Fund owns proprietary food distribution and wholesale networks through which it sells both its own products and those of third parties to approximately 20,000 customers. The Fund's family of brands includes Grimm's, Harvest, McSweeney's, Quality Fresh Foods, Hempler's, Hygaard, Harlan's and Gloria's Catering. Premium Brands trades on the TSE under the symbol PBI.UN.

The completion of the transaction is subject to, among other things the approval of the regulatory authorities and the completion of due diligence by the purchaser.

Management engaged the services of Capital West Partners, an investment banking firm, to conduct a formal sale process canvassing the market of potential buyers.

The Spectra Board of Directors has concluded that the sale of the Bread Garden and Creekside businesses is in the best interests of Spectra and its shareholders.

The Spectra Group of Great Restaurants Inc. is a multi-concept restaurant company currently operating in British Columbia. Headquartered in Vancouver, Spectra has a system total of 21 restaurants and 85 express locations, including the Bread Garden, The Boathouse, Red Door, Kingston Taphouse and Grill and under license from Brinker International, Romano's Macaroni Grill.

Spectra's shares trade on the Toronto Stock Exchange under the symbol's "SPA" and SPA.A".

ON BEHALF OF THE BOARD OF DIRECTORS:

PETER J. BONNER, Chief Executive Officer

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

Contact Information

  • The Spectra Group of Great Restaurants Inc.
    Richard C. Benmore
    Chief Financial Officer
    (604) 714-6500
    (604) 714-6540 (FAX)
    or
    The Spectra Group of Great Restaurants Inc.
    General Investor Information
    (604) 714-6584