MTY Food Group Inc. (MTY) announced that one of its wholly owned subsidiaries, MTY Franchising USA, Inc., has entered into a definitive merger agreement (the "Merger Agreement") under which MTY would acquire all of the issued and outstanding shares of COP WP Parent, Inc. ("Wetzel's Pretzels") for cash consideration of approximately US$207 million (C$284 million) (the "Transaction"), on a cash-free, debt-free basis.
MTY (TSX:MTY) is a leading franchisor in the North American restaurant industry and Wetzel's Pretzels is a franchisor and operator of quick service restaurants operating in the snack category. Its network of over 350 locations, 90% of which are franchised, can be seen in 25 states in the U.S., as well as in Canada and Panama. During the last twelve months, total network sales have reached approximately US$245 million, serving nearly 21 million customers. MTY believes this transaction adds a well-established brand that is a category leader to MTY's portfolio of restaurant brands, as well as a promising new street concept operating under Twisted by Wetzel's and further expands MTY's geographic footprint in the United States.
A team composed of Jenny Moody at MTY, together with a Fasken team composed of Neil Kravitz, Kiran Singh, Vincent Chaurette and Gemma Caprio and Shai Kalansky, Carey Hughes and Dustin McKenzie at Morrison Foerster and advised MTY in connection with this transaction.