Canadian restaurant franchisor MTY Food Group Inc. announced Tuesday it will acquire Imvescor Restaurant Group Inc. in a cash-and-stock deal worth 248 million Canadian dollars.
The Montreal-based restaurant franchisors will control more than 5,700 units across 75 brands, generating systemwide sales of about CA$2.9 billion.
With the tie-up, MTY adds brands such as Scores, Pizza Delight, Commensal, Bâton Rouge Steakhouse & Bar, Ben & Florentine and Toujours Mikes to a portfolio that already includes TCBY Frozen Yogurt, Big Smoke Burger, Le Steak Frites and Wasabi Grill and Noodle.
MTY will pay CA$4.10 per share to Imvescor shareholders, a 13.3 percent premium, with CA$50 million of it in cash, representing 20 percent of the total purchase price. Both companies’ shares trade on the Toronto Stock Exchange.
The move comes less than a month after MTY purchased the California-based parent company of The Counter and Built Custom Burgers, CB Franchise Systems LLC, for about US$25 million.
“Since the acquisition of Kahala Brands in July 2016, MTY has been seeking potential additions to its strong portfolio of brands,” Stanley Ma, CEO and chairman of MTY, said in a statement at the time.
MTY made other sizable additions to its portfolio in 2016, adding the parents of Blimpie, Cold Stone Creamery, Planet Smoothie and Pinkberry, as well as Baja Fresh Mexican Grill and La Salsa Fresh Mexican Grill, for about US$337 million.
Representatives for both companies did not immediately respond to requests for comment.
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