MONTREAL — MTY Food Group Inc. has signed an agreement to acquire Scottsdale, Ariz.-based Kahala Brands, Ltd. for an estimated US $300 million.
The acquisition of Kahala represents a major milestone for MTY as it solidifies its presence in the U.S., which will become a major growth platform for company.
“This is one of the most important days in the history of MTY, being able to acquire a great portfolio of brands managed by among the very best people in the industry,” says Stanley Ma, chair of the Board and CEO of MTY. “MTY had been searching for the right foundation for its U.S. expansion for the last three years and it has finally found the perfect match. The combination of the two companies’ portfolios and expertise will produce tremendous opportunities in Canada, the U.S. and worldwide.”
With the addition of Kahala’s 18 brands (including Pinkberry and Cold Stone Creamery), MTY’s portfolio will comprise approximately 5,500 stores under 57 brands.
The transaction is expected to close within the next 75 days.
