MONTREAL — MTY Franchising USA Inc., under MTY Food Group Inc., has acquired all issued and outstanding shares of COP WP Parent, Inc. (“Wetzel’s Pretzels”) for US$207 million (CAD $284 million).
The transaction, expected to close in 30 to 45 days, is not subject to any financing condition and will be 100-per-cent funded in cash. MTY will use its cash and credit facility to support the cash consideration.
Both companies have unanimously approved the terms and conditions of the Merger Agreement. Upon completion of the transaction, Wetzel’s Pretzels will become a wholly owned subsidiary of MTY.
Wetzel’s Pretzels is a franchisor and operator of quick-service restaurants operating in the snack category. The company has more than 350 locations, 90 per cent franchised, in the U.S, Canada and Panama. During the last 12 months, total network sales have reached approximately US$245 million, serving nearly 21 million customers.
The merger will increase MTY’s presence in the snack category and add a well-established, leading brand to the MTY portfolio. It will expand to more than 4,200 locations, increasing total system sales to 70 per cent with a new street concept under Twisted by Wetzel’s.
