MONTREAL — Canadian company MTY Food Group, Inc. has reached an agreement to acquire all of the issued and outstanding shares of common stock of Papa Murphy’s for $6.45 per share, or approximately $190 million. The purchase price implies a premium of 31.9% to Papa Murphy’s closing price on April 10 and a premium of 46.3% to the pizza chain’s closing price on Nov. 7, 2018, which is the date the company said it was conducting a process to explore and evaluate strategic alternatives to maximize shareholder value.

“This is an important transaction for MTY as we add a brand with a differentiated position in pizza to our existing U.S. portfolio,” said Eric Lefebvre, chief executive officer of MTY. “We are thrilled about the prospect of welcoming the Papa Murphy’s brand, its franchise partners and employees to the MTY family. Papa Murphy’s is a unique concept with over a 35-year history of providing a superior quality product made with fresh ingredients. We believe the pizza segment is highly attractive due to its size, fragmented nature and growth potential. The Papa Murphy’s brand is well loved by its loyal customers and is supported by a strong network of franchise partners. We expect the combination of these two companies and the expertise it brings to produce tremendous opportunities for MTY’s U.S. expansion objectives.”

Jean Birch, chairperson of the board of directors at Papa Murphy’s, said the agreement provides immediate value to its shareholders at a premium over the pizza chain’s current share price.

“Merging our unique, differentiated brand with a global leader in franchised restaurant concepts will accelerate ongoing efforts to enhance our convenience and relevance and maintain our position as the No. 1 Take ‘n’ Bake pizza chain in the United States,” Ms. Birch said.

Founded in 1981, Papa Murphy’s operates 1,331 franchised and 106 corporate-owned locations in 37 U.S. states, Canada and the United Arab Emirates. Papa Murphy’s is the largest take-and-bake pizza brand and the fifth largest pizza chain in the United States. The company had adjusted EBITDA of $22.3 million and system-wide sales of $809 million in the year ended Dec. 31, 2018.

MTY is the franchisor and operator of more than 5,940 food service locations under such brands as Pinkberry, Cold Stone Creamery, Grabbagreen and Blimpie.