In a deal valued at $190 million, MTY Food Group has reached an agreement to acquire Papa Murphy’s Holdings, a take and bake pizza concept. The transaction remains subject to customary closing conditions including receipt of applicable regulatory approvals.
In November 2018, Papa Murphy’s announced plans to explore strategic alternatives to maximize shareholder value and assisted a financial advisor to assist in the process.
MTY franchises a variety of restaurant concepts in North America, including frozen yogurt chain TCBY. In May of last year MTY updated its management team to focus on acquisitions and in 2018 the company inked deals to acquire South St. Burger, Casa Grecque and Sweet Frog Premium Frozen Yogurt.
As at Feb. 28, 2019, MTY’s network had 5,941 locations in operation, mostly all franchised, including more than 500 locations operating in 39 countries outside North America. Upon completion of this deal, MTY will have more than 7,400 locations systemwide. Papa Murphy’s was founded in 1981 and operated 1,331 franchised and 106 corporate-owned stores in 37 U.S. states, Canada and the United Arab Emirates as of Dec. 31, 2018.