MTY buying Papa Murphy's

Photo: Papa Murphy's

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, hand-crafted 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.