MONTREAL — A wholly-owned subsidiary of MTY Food Group Inc. has signed an agreement to acquire the assets of Dagwoods Sandwiches and Salads for an estimated $3 million.
There are currently 23 Dagwoods restaurants in operation (21 franchised and two non-traditional), 22 of which are in Quebec and one in Ontario. In the last fiscal year, the Dagwoods network has generated approximately $8 million in sales.
Spiro Krallis, Dagwoods’ current president, will continue with MTY for a three-month period to ensure a smooth transition. Michel Lamontagne will lead the Dagwoods operations following the closing of the transaction. MTY expects to move the Dagwoods operations to its headquarters in St-Laurent, Quebec.
The transaction is expected to close within 90 days of this announcement and remains subject to multiple conditions, including standard regulatory approvals and other conditions customary for a transaction of this nature.