Pizza Delight Corp. said Thursday it will buy Mikes Restaurants Inc., operator of 118 outlets in Quebec, for $14.5-million.
Under the deal, Pizza Delight will offer $4.35 cash for all outstanding shares of Mikes Restaurants. Quebec-based Mikes Restaurants' main shareholders have agreed to tender more than two million shares to the offer, representing 59.9 per cent of the company's outstanding stock.
"Pizza Delight and Mikes are strong complementary brands based on a tradition of family values and a commitment to the communities in which we do business," Bernard Imbeault, Pizza Delight founder and president, said in a statement.
"We see these core brands and the values they represent as a solid foundation for our growth."
Pizza Delight said, once the deal is completed, it will operate the two divisions separately, although it will "take advantage of the opportunities and resources provided by our size to provide better training, more technology and increased efficiencies."
The two companies expect combined sales to be $200-million.
Based in Moncton, privately held Pizza Delight and its franchisees operate 180 restaurants in seven Canadian provinces. Pizza Delight also owns Le Coq Roti and Pizza Patios in Quebec and Atlantic Canada and Canadian 2-for-1 Pizza in British Columbia.
Mikes Restaurants, with annual sales of about $100-million, runs 118 outlets, mainly in Quebec.