MTY Food Group to buy PE-backed Kahala Brands for $300 mln

Montréal-based MTY Food Group Inc (TSX: MTY) has agreed to acquire the shares of Kahala Brands Ltd, a Scottsdale, Arizona-based restaurant franchising company with 2,800 stores worldwide. The deal has a total consideration of US$300 million, US$240 million of which will be paid in cash, and is expected to close within the next 75 days. MTY said the acquisition will facilitate the U.S. expansion of its quick-service franchising business. Kahala was acquired in August 2013 by Canadian private equity firms Serruya Private Equity and Delavaco Group. It has since closed several add-on acquisitions, including Planet Smoothie and Tasti D‑Lite, which were bought last June.

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