Canadian franchisor and quick service restaurant operator MTY Food Group has purchased the assets of fast food restaurant concept Grabbagreen franchise system.
The acquisition was carried out through one of MTY’s wholly-owned subsidiaries for a total consideration of approximately $2.675m, subject to customary post-closing adjustments.
On closing of the deal, MTY paid a total of nearly $2.4m financed from the group’s cash on hand.
With the completion of the transaction, Jesse Schwarz will lead the brand’s operations under the leadership of MTY US operations COO Jeff Smit.
In addition, MTY has plans to combine the corporate operations and manage the franchising platform from its US headquarters in Scottsdale, Arizona.
At the time of the transaction, Grabbagreen operated a total of 27 restaurants that are currently in operation in the US, of which 26 are franchised and one corporate.
Founded in 2013, the franchising platform’s Eat Clean menu provides semi-organic, preservative-free, and GMO-free options to its customers.
Grabbagreen’s made-to-order whole food menu offers grain and green-based bowls with fresh hormone-free and antibiotic-free chicken and beef sourced from local farms, fresh-pressed juice, handcrafted smoothies and acai bowls, breakfast, and healthy items for children.
During the 2017 fiscal year, MTY expanded its casual dining space through acquisitions worth more than C$29m.
It generated over $2.3bn in system sales last year and same-store sales declined by 0.2% for the twelve-month period.
As of 30 November 2017, MTY had 5,469 locations in operation, of which 5,402 were franchised or under operator agreements and the remaining 67 locations were operated by MTY.
MTY’s network opened 115 locations in Canada, 85 in the US and 60 internationally, and closed 454 locations during 2017.