MTY Food Group Inc., Canada, acquired all of the shares of Kahala Brands Ltd. for $310 million.
At closing, Kahala operates 18 brands in 27 countries, totaling approximately 2,800 locations. The combined entity is expected to produce over $2 billion annually in system sales generated by approximately 5,500 franchised and corporate locations.
"This is a turning point in MTY's history," says Stanley Ma, chief executive officer of MTY. "MTY now has a solid, profitable and scalable platform from which to grow its U.S. and international operations. Moreover, a sizeable, dynamic and talented group of employees is now joining the MTY family. This transaction opens the door to endless opportunities for MTY and its shareholders."
The operations of Kahala will stay in Kahala's current Scottsdale, Ariz., headquarters, while MTY's U.S. operations will move into Kahala's offices. Jeff Smit, Kahala's chief operating officer, will lead the U.S. operations of the combined entity.