MTY Food Group, parent to Papa Murphy’s, acquired Famous Dave’s parent BBQ Holdings, the company announced on Tuesday. The deal was priced at $17.25 a share, or about $200 million.
BBQ Holdings, parent to Famous Dave’s as well as Village Inn, Barrio Queen, Granite City and other restaurants, operates over 200 franchised locations and 100 corporate-owned stores. BBQ Holdings acquired Barrio Queen earlier this year.
"This transaction represents another key acquisition for MTY as we further scale and enhance our existing U.S. portfolio through the addition of nine unique brands," said Eric Lefebvre, CEO of MTY, in a release. “The transaction combines highly complementary businesses, including BBQ Holdings' exciting casual and fast casual brands. BBQ Holdings' restaurants are well established within each of their respective markets with a strong network of franchise partners, well-run corporate owned locations, and a best-in-class management team. We are excited about the prospects of adding BBQ Holdings' brands to the MTY family and we look forward to welcoming [BBQ Holdings CEO] Jeff Crivello and his team, and their franchise partners.”
MTY Food Group, based in Montreal, franchises and operates a variety of quick-service and casual-dining restaurants including TCBY Frozen Yogurt, Cold Stone Creamery and Planet Smoothie. It merged with Vancouver, Wash.-based Papa Murphy’s Holdings Inc. in 2019.
Crivello said in a release, "We are thrilled to partner with MTY and its talented team of restaurant operators. Over the past four years we have significantly grown revenues and our restaurant portfolio while building a world-class team of entrepreneurs. We look forward to continuing the execution of our three pillars of growth, which we believe align very closely with MTY's vision. With more than 80 brands, MTY brings vast buying power and a team of industry leaders who will provide additional support to our franchise partners. As our founder Dave Anderson says, we strive to deliver famous experiences with our 'yes is the answer, what's the question' hospitality."