Canadian franchisor MTY Food Group is continuing to strengthen its presence in the U.S. with the purchase of Washington-based pizzeria Papa Murphy’s.
The two companies have entered into a merger agreement under which MTY will acquire all of the issued and outstanding shares of common stock of Papa Murphy’s in a deal totalling $253.2 million (US$190 million).
“This is an important transaction for MTY as we add a brand with a differentiated position in pizza to our existing U.S. portfolio,” said MTY CEO Eric Lefebvre. “We are thrilled about the prospect of welcoming the Papa Murphy’s brand, its franchisees and their employees to the MTY family.”
Founded in 1981, Papa Murphy’s is the fifth largest pizza chain in the U.S. The company operates 1331 franchised and 106 corporate-owned stores across Canada, the U.S., and the U.A.E.
“The Papa Murphy’s brand is well loved by its loyal customers and is supported by a strong network of franchisees,” added Lefebvre. “We expect the combination of these two companies and the expertise it brings to produce tremendous opportunities for MTY’s U.S. expansion objectives.”
Based in Montreal, MTY franchises and operates quick-service and casual dining restaurants under approximately 75 different banners in Canada, the U.S., and beyond.