April 11, 2019 / 11:57 AM / 8 months ago

BUZZ-Papa Murphy's: Canada's MTY Food to buy co, shares surge

** Take ‘n’ Bake pizza operator and franchisor’s shares climb 32% to $6.45 premarket; set to open at its highest since Nov. 2017

** MTY Food Group to buy Papa Murphy’s for ~$190 mln, including debt, to expand its U.S. pizza portfolio

** MTY, a franchisor in North American restaurant industry, will pay $6.45 in cash per FRSH share, a premium of ~32% to FRSH’s Wednesday close

** “We believe the pizza segment is highly attractive due to its size, fragmented nature and growth potential”- MTY’s CEO Eric Lefebvre

** Deal is expected to be immediately accretive to MTY’s EBITDA and cash flow per share; deal expected to close by Q2 2019

** FRSH up ~3% YTD, while MTY down 3.4% (Reporting by Nivedita Balu in Bengaluru)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below