MTY Food Group has agreed to acquire the assets of Allô! Mon Coco, a chain of gourmet breakfast and lunch restaurants.
Both companies did not disclose the transaction’s financial terms. MTY said it will finance the deal using its cash on hand and existing credit facilities.
Currently, the Allô! Mon Coco network has 39 franchised restaurants in operation, with 38 of these in the province of Quebec and one in the Province of Ontario.
The network has generated around $57m in system sales in the past 12 months.
The deal includes the Allo! Mon Coco trademark for the world except the US. Under the agreement, MTY will obtain a right of first refusal if the owners of the trademark for the US decide to sell it.
Allô! Mon Coco’s existing president Tom Bountis will be with MTY for about 12 months.
MTY CEO Eric Lefebvre said: “MTY is very excited to have the opportunity to add another young, dynamic and distinctive breakfast chain to its portfolio. Allô! Mon Coco has had great success in the past and it has a great potential for further growth in the future.”
MTY expects to close the transaction within the next 45 days subject to various customary conditions.
In April 2019, MTY had agreed to acquire Papa Murphy’s, a franchisor and operator of the largest Take ‘n’ Bake pizza brand in the US, for around $190m.
Papa Murphy’s was founded in 1981. It operates more than 1,400 franchised and corporate-owned stores in 37 US states, Canada, and the UAE.
Earlier this year, MTY Food Group acquired substantially most of the assets of South Street Burger, which has 24 franchised restaurants and 13 corporate restaurants in operation.
MTY Group franchises and operates quick-service and casual dining restaurants under around 75 different banners in Canada, the US and internationally.