MONTREAL — MTY Food Group Inc. signed an agreement today to acquire all of the equity interest of BF Acquisitions Holdings, LLC. (BFAH) — owner and franchiser of Baja Fresh Mexican Grill and La Salsa Fresh Mexican Grill.
“Following the addition of Kahala last month, MTY intends to continue and accelerate its growth throughout North America, leveraging both its U.S. platforms and Canadian platforms to acquire profitable restaurant concepts,” says Stanley Ma, chairman and CEO of MTY. “The acquisition of Baja Fresh Mexican Grill and La Salsa Fresh Mexican Grill perfectly aligns with our growth strategy and is one more step towards building a bigger and better organization for the future.”
BFAH currently franchises and operates 162 Baja restaurants and 23 La Salsa restaurants in the U.S., Dubai and Singapore. Of the combined 169 properties, 16 are corporately owned and 169 are franchised. In 2015, BFHA generated more than US$145 million in system sales.
MTY’s successful acquisition of the two brands represents a critical achievement for the Montreal-based company, strengthening its influence in the U.S. and confirming MTY’s ability to do business outside of North America.
Following completion of the transaction, the BFAH head office will be relocated to MTY’s Scottsdale, Ariz. office. The transition is expected to take place before the end of MTY’s 2016 fiscal period.
Though the two companies’ agreement is binding, it is subject to multiple conditions, including regulatory and financing approvals. The total transaction is estimated at US$27 million in cash, financed by MTY’s existing credit facilities and is expected to close within the next 30 days.