MTY Food Group Inc. has signed an agreement to acquire Papa Murphy’s Holdings Inc. in a deal it valued at roughly US$190.0 million or C$253.2 million, including debt.
Under the transaction, Montreal-based MTY will pay US$6.45 in cash for each share of Papa Murphy’s, which is about 32 per cent above Wednesday’s closing price of US$4.89.
Papa Murphy’s sells fresh, handcrafted pizzas ready for customers to bake at home, as well as salads, side dishes and desserts.
As of the end of 2018, it had 1,331 franchised and 106 corporate-owned stores in 37 U.S. states, Canada and the United Arab Emirates.
MTY is a franchisor and operator of a broad range of restaurants.
Its banners include shopping mall food court staples such as Thai Express, Vanellis and Manchu Wok, as well as full-service restaurants such as Baton Rouge, Pizza Delight and Scores.