MONTREAL, - MTY Food Group Inc. ("MTY" or the "Company") (TSX: MTY) today announced that one of its wholly owned subsidiaries, MTY Franchising USA, Inc., has entered into a definitive merger agreement (the "Merger Agreement") under which MTY would acquire all of the issued and outstanding shares of COP WP Parent, Inc. ("Wetzel's Pretzels", www.wetzels.com) for cash consideration of approximately US$207 million (C$284 million) (the "Transaction"), on a cash-free, debt-free basis. The terms and conditions of the Merger Agreement were unanimously approved by the Boards of Directors of both companies. The Transaction is subject to customary closing conditions including receipt of applicable regulatory approvals. Upon completion of the Transaction, Wetzel's Pretzels will become a wholly owned subsidiary of MTY.
Wetzel's Pretzels is a franchisor and operator of quick service restaurants operating in the snack category. Its network of over 350 locations, 90% of which are franchised, can be seen in 25 states in the U.S., as well as in Canada and Panama. During the last twelve months, total network sales have reached approximately US$245 million, serving nearly 21 million customers.
"This transaction represents another key acquisition for MTY as it adds another iconic brand to MTY's U.S. portfolio. The transaction enhances MTY's footprint in the snack category, with Wetzel's Pretzels' strong network of franchise partners, well-run corporate-owned locations, and a best-in-class management team. Its products are extremely craveable and are recognized everywhere in the U.S. by a broad range of customers. We look forward to exploring all the opportunities this transaction brings to both companies" commented Eric Lefebvre, Chief Executive Officer of MTY.
Source : Newswire.ca