MTY Food Group to Acquire Papa Murphy's for Approximately $190 Million
MTY Food Group Inc. announced a definitive agreement to acquire Papa Murphy’s Holdings, Inc. for approximately $190 million, a move expected to bolster its presence in the U.S. pizza market.
MTY Food Group Inc. has entered into a definitive merger agreement to acquire Papa Murphy’s Holdings, Inc. for approximately $190 million in cash. The transaction, including Papa Murphy's net debt, values the company at roughly $253.2 million CAD.
The purchase price of $6.45 per share represents a significant premium over Papa Murphy's recent and unaffected share prices. This acquisition is set to enhance MTY's diverse portfolio of restaurant brands, particularly strengthening its position in the competitive U.S. pizza sector.
MTY Food Group, which operated over 5,900 locations as of late February 2019, will add Papa Murphy's, the largest Take 'n' Bake pizza brand and the fifth-largest pizza chain in the United States. Papa Murphy's operates 1,437 locations, predominantly franchised.
The deal is anticipated to strengthen MTY's U.S. operations and improve its financial performance through expected synergies and growth opportunities. The transaction remains subject to customary closing conditions and regulatory approvals.