BBQ Holdings, Inc. (NASDAQ: BBQ) is a global restaurant company, which owns and operates franchises in the casual and fast casual dining category. As of August 9, 2022, BBQ Holdings operates over 100 locations and over 200 franchised locations across its portfolio. Among the restaurant brands owned and operated by the company include Granite City Food and Brewery, Village Inn and Bakers Square, Tahoe Joe’s, Barrio Queen, and Famous Craft Concepts. Shares of the restaurant company are rallying 46% through afternoon trading on Tuesday, August 9, 2022. Over the past three months, BBQ Holdings has seen average daily volume of 26,700 shares. However, volume of 1.06 million shares or dollar volume of around $18.15 million, has already exchanged hands through afternoon trading.
Shares of BBQ Holdings are soaring Tuesday, after the company announced that it has entered into a definitive agreement to be acquired by Montreal-based MTY Food Group, Inc. (TSX: MTY) (OTC Pink: MTYFF) for $17.25 per share or a total transaction value of $200 million. MTY is a North American-focused restaurant franchising company, which has over 6,660 locations across its portfolio, as of May 2022. Once the BBQ Holdings acquisition closes, MTY will have around 7,000 locations, including 3,900 in the United States.
The transaction is subject to customary closing conditions, which include regulatory and shareholder approvals. If approved, BBQ Holdings will become a wholly-owned subsidiary of MTY Food Group and will de-list from the NASDAQ. The acquisition is estimated to close by the fourth quarter of 2022.
Once finalized, the newly-combined company is estimated to have total sales over C$4.8 billion and provide an immediate boost to MTY’s free cash flow per share. The transaction will greatly expand MTY’s U.S. presence, which expects its sales growth to increase from 58% to 66% in the country.
Jeff Crivello, Chief Executive Officer of BBQ Holdings, commented: “We are thrilled to partner with MTY and its talented team of restaurant operators. Over the past four years we have significantly grown revenue and our restaurant portfolio while building a world-class team of entrepreneurs. We look forward to continuing the execution of our three pillars of growth, which we believe align very closely with MTY’s vision. With more than 80 brands, MTY brings vast buying power and a team of industry leaders who will provide additional support to our franchise partners. As our founder Dave Anderson says, we strive to deliver famous experiences with our ‘yes is the answer, what’s the question’ hospitality.”
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The post BBQ Holdings (NASDAQ: BBQ) Enters into Agreement to be Acquired by MTY Food Group (TSX: MTY (OTC Pink: MTYFF) for $200 Million appeared first on Spotlight Growth.
