Pancake House buys Max’s

Listed Pancake House Inc. has sealed a deal to purchase 20 companies of the Max’s Group of Companies for P4.05 billion.

The agreement paves the way for the backdoor listing of the Max’s Group, which acquired a controlling stake in the Lorenzo family’s casual dining chain operator early this year.

Pancake House said in a stock exchange filing Tuesday that its management, now led by its CEO, Robert Trota, was buying Max’s units that include the operator of the Max’s restaurants across the country as well as the group’s franchising and bakery interests.

Trota, also president of Max’s Group, initially said in March that Max’s would keep both entities separate businesses, although the announcement yesterday was widely expected, analysts said.

“This transaction leverages the operational synergies of both groups, creating a bigger, more integrated and efficient organization,” Pancake House said in its stock exchange filing on Tuesday.

Also part of the deal are The Real American Doughnut Co. Inc., which brought in the Krispy Kreme franchise from the United States, and Fresh Healthy Juice Boosters, which brought in Jamba Juice.

Other companies that were included are No Bia Inc., RooM Ventures Corp. and Trota Gimenez Realty Corp.

Pancake House Max’s officials did not immediately respond to an Inquirer request to elaborate.

Pancake House said it would first need the approval of the Securities and Exchange Commission to expand its capital to complete the transaction.

It would acquire the companies by issuing shares valued at P4.05 billion, the filing showed.

The price will be P15 per share if issued before the record date for the stock dividend approved by shareholders in January and P7.50 per share, if issued after the record date, the filing added.

Pancake House was established in 1974 and made its name serving Filipino and American comfort food staples adjusted to local tastes under the Pancake House brand.

It has since expanded into new brands, mainly through acquisitions,  and its previous management said it was keen on buying more companies, before the surprise announcement of a sale to Max’s late last year.

It had a total store network of 305 at the end of 2013, mainly Pancake House and Yellow Cab, followed by Teriyaki Boy, Le Coeur de France, The Sizzlin’ Pepper Steak and Dencio’s.

The Max’s Group, considered a Filipino heritage brand, which started in 1945, has about 150 stores in the country and overseas, a previous statement showed.