Papa Murphy’s and MTY Food Group Announce Merger
The transaction was valued at $190 million USD
Joanna Fantozzi, Nation's Restaurant News
Apr 11, 2019
Vancouver, Wash.-based pizza chain Papa Murphy’s Holdings Inc announced a merger with Canadian franchisor MTY Food Group Inc. on Thursday. MTY Food Group Inc. is a North American franchisor specializing in multi-concept brands including TCBY Frozen Yogurt, Cold Stone Creamery, and Planet Smoothie.
Under the agreement, MTY will acquire all issued and outstanding shares of Papa Murphy’s common stock for cash consideration of $6.45 USD per share, a transaction valued at $190 million USD (C$253.2 million), including Papa Murphy’s Holdings Inc outstanding net debt.
“The board of directors and our advisors have thoroughly evaluated all options available to us and are confident that this agreement provides immediate value to our stockholders at a premium over our current share price,” Jean Birch, Chairperson of the board of directors of Papa Murphy’s said in a statement.
Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Papa Murphy's breached their fiduciary duties with the sale of the company...