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

The Spectra Group of Great Restaurants Inc.

November 01, 2006 16:02 ET

The Spectra Group of Great Restaurants to Sell The Boathouse Restaurant Business

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 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 Boathouse restaurant business to McCormick & Schmick's Seafood Restaurants, Inc. (McCormick's) based out of Portland, Oregon in an all cash transaction valued at $16,170,000, plus the assumption of certain working capital assets and liabilities. The Boathouse business includes the new restaurant that is under construction in Port Moody.

The Spectra Board believes this is an excellent opportunity for Spectra's shareholders to realize full value for the Boathouse business. It is anticipated that a substantial portion of the net proceeds of the transaction will be paid out to Spectra shareholders by way of a special dividend.

McCormick & Schmick's Seafood Restaurants, Inc. is a publicly owned restaurant company which operates 63 seafood specialty restaurants throughout the United States. The acquisition of The Boathouse brand from Spectra represents their entry into the Canadian market and it is their intention to grow through the expansion of The Boathouse across Canada. McCormick's trades under the symbol MSSR on the Nasdaq exchange in the U.S.

The completion of the transaction is subject to, among other things the approval of the regulatory authorities, as well as the approval by the holders of all Spectra's shares. A special meeting of Spectra's shareholders will be held, as soon as possible.

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 Boathouse business is in the best interests of Spectra and its shareholders and will recommend that that the shareholders vote in favor of the sale.

Spectra will continue to review its continuing businesses with a view to enhancing shareholder value.

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.
    For General Investor Information
    (604) 714-6584