MTY Food Group announced on Tuesday that it has acquired American company BBQ Holdings, which operates hundreds of restaurants across the United States, Canada and the United Arab Emirates.
Quebec fast-food giant is acquiring BBQ Holdings in a $200 million deal, or about CA$257 million including corporate debt, by offering $17.25 per share.
This transaction will allow MTY to add nine new restaurant brands to its portfolio.
“BBQ Holdings is a very complementary network to that of MTY and this transaction allows for the addition of informal restaurant concepts under BBQ Holdings’ recognized banners,” said Éric Lefebvre, President and CEO of MTY.
According to MTY’s forecast, the company’s expected revenues could increase by 23% to more than C$4.8 billion upon closing of the transaction.
Following the transaction, which is subject to customary closing conditions, BBQ Holdings will become a subsidiary of MTY and its common stock will no longer be listed on NASDAQ.
“Over the past four years we have significantly increased our sales and restaurant portfolio while building a world-class team of entrepreneurs. We look forward to continuing to advance our three pillars of growth, which we believe align very closely with MTY’s vision,” said Jeff Crivello, President and CEO of BBQ Holdings.
As of August 8, 2022, BBQ Holdings owned over 100 corporate locations and over 200 franchised locations. Revenues for the fiscal year ended January 1, 2023 are expected to be between $685 million and $725 million.
MTY’s network, owner of brands such as Allo mon Coco, Thaï Express, Sushi Shop and Valentine, included 6,660 establishments in Canada and the United States. This new acquisition will allow it to reach 7,000 locations, including more than 3,900 in the United States.