MONTREAL — Canadian company MTY Food Group, Inc. has agreed to acquire Kahala Brands, Ltd., parent company of 18 brands, including Cold Stone Creamery, Blimpie and Pinkberry. The acquisition of the Scottsdale, Ariz.-based company is contingent on the merger of a wholly-owned subsidiary of MTY with and into Kahala. The cash-and-stock deal, expected to be complete within 74 days, is valued at $300 million.
MTY is the franchisor and operator of more than 2,700 restaurants under 39 brands, including TCBY, Madisons New York Grill & Bar and Big Smoke Burger. The acquisition of Kahala Brands will result in a combined entity of approximately 5,500 units under 57 brands with total system-wide sales of more than $1.5 billion as well as $190 million a year in revenue.
MTY, which operates restaurants mainly in Canada as well as 14 other countries, is headquartered in St.-Laurent, Que. After the transaction is complete, the company’s U.S. headquarters will move to Scottsdale, Ariz.
|Stanley Ma, chair of the board and c.e.o. of MTY|