MTY Food Group Inc., owner of Kahala Brands, has agreed to acquire the parent of The Counter and Built Custom Burgers brands, the Montreal-based company said Tuesday.
Terms of MTY’s planned acquisition of The Counter’s Culver City, Calif.-based parent, CB Franchise Systems LLC, were not disclosed.
“Since the acquisition of Kahala Brands in July 2016, MTY has been seeking potential additions to its strong portfolio of brands,” said Stanley Ma, MTY CEO and chairman, in a statement. “The Counter and Built fit that perfectly.”
The Counter and Built Custom Burgers have 41 franchised locations and three corporate-owned locations. Of those 44 restaurants, 34 are in the U.S., one is in Canada and nine are in other countries.
MTY said over the last 12 months, the combined Counter and Built networks generated more than $81 million in sales systemwide.
The company said the deal will be financed with cash on hand and through existing credit facilities.
MTY bought multibrand franchisor Kahala Corp. in May 2016 in a cash-and-stock deal valued at $300 million. That added such brands as Blimpie, Cold Stone Creamery, Frullati Café & Bakery, Planet Smoothie, Pinkberry and Tasti D-Lite to MTY’s portfolio.
In September 2016, MTY expanded its brands by buying BF Acquisition Holdings LLC, owner of Baja Fresh Mexican Grill and La Salsa Fresh Mexican Grill, for $27 million.
Currently, MTY operates about 60 brands across various segments in the U.S., Canada and abroad.
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