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May 24, 2019

MTY Food buys Papa Murphy’s Holdings for $190m

Canadian franchisor and operator of multiple concepts of restaurants MTY Food Group has acquired all of the issued and outstanding shares of Papa Murphy’s Holdings for approximately $190m.

Canadian franchisor and operator of multiple concepts of restaurants MTY Food Group has acquired all of the issued and outstanding shares of Papa Murphy’s Holdings for approximately $190m.

The company closed the deal through the consummation of a merger of its wholly-owned subsidiary, MTY Columbia Merger Sub, with and into Papa Murphy’s without a vote of the Papa Murphy’s stockholders.

Each share of Papa Murphy’s common stock has been converted into the right to receive $6.45 per share in cash.

As the transaction was completed, Papa Murphy’s will now operate as an indirect wholly-owned subsidiary of MTY from its current support centre in Vancouver, Washington.

The deal was announced in April this year, during which MTY stated that it is going to fund the transaction using cash on hand and its existing credit facility, as well as repay Papa Murphy’s net debt outstanding of approximately $77.4m.

National Bank Financial served as exclusive financial advisor, and Fasken Martineau DuMoulin LLP and Morrison & Foerster as legal advisors to MTY on this transaction.

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North Point Advisors as financial advisor and Perkins Coie as legal advisor to Papa Murphy’s to close the deal.

Established in 1981, Papa Murphy’s operates over 1,331 franchised and 106 corporate-owned restaurants in 37 US states, Canada and the UAE.

Take ‘n’ Bake offers scratch-made pizzas along with grab ‘n’ go items such as salads, sides and desserts.

Earlier this month, MTY also agreed to acquire the assets of Allô! Mon Coco, a chain of gourmet breakfast and lunch restaurants.

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