Canadian franchisor and quick-service restaurant operator MTY Food Group has entered an agreement to purchase the assets of the sweetFrog Premium Frozen Yogurt franchise system for $35m.
Based in the US, sweetFrog currently operates 254 franchised locations and 78 corporate-owned locations globally. It offers soft-serve frozen yogurt, ice cream, gelato and sorbets.
As part of the deal, MTY Food Group will own the corporate-owned locations and convert them into franchised locations.
The deal will strengthen MTY’s presence in the frozen treat category and in the US.
MTY US operations COO Jeff Smit said: “SweetFrog is an exciting brand serving premium quality frozen yogurt and will fit perfectly within our portfolio of brands. We are extremely happy about everything this brand has to offer and the growth potential ahead.”
The transaction is subject to several customary conditions and is expected to close within 30 days.
After completion of the transaction, MTY plans to consolidate operations and run the franchising platform from its US headquarters in Scottsdale, Arizona, which is headed by Smit.
SweetFrog Enterprises chairman and CEO Patrick Galleher said: ‘With an executive of Jeff Smit’s caliber leading US operations, MTY is the perfect organisation to lead sweetFrog during its next chapter of success.
“I am excited to see what Smit and his team of restaurant industry experts can do as we become the largest sweetFrog multi-unit franchisee.”
MTY will finance the total consideration for the transaction through cash in hand and existing credit facilities.
Headquartered in Montreal, Quebec, MTY Food Group franchises more than 70 different restaurant concepts and operates approximately 5,400 locations.