BRIEF-MTY to buy Kahala Brands for a total of about $300 mln

Wed May 25, 2016 8:34am EDT
 
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May 25 (Reuters) - MTY Food Group Inc

* MTY enters into an agreement to acquire the shares of Kahala Brands Ltd

* Total consideration for transaction is estimated at US$300 million

* Transaction is expected to be immediately accretive.

* MTY Food Group says cash component of consideration will be financed by MTY's cash on hand and by new credit facility that is presently being arranged

* Deal with issuance of 2,253,930 shares of MTY and payment of US$240 million in cash

* During 12 months following acquisition, combined entity is expected to generate over C$90 million in EBITDA

* During 12 months following acquisition, combined entity is expected to generate C$250 million in revenues and C$2 billion in system sales Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)