MTY Food Group Inc. (Montreal) has entered into a definitive merger agreement with COP WP Parent Inc. (Pasadena, California), operator of the Wetzel’s Pretzels quick-service restaurants. The all-cash deal is for $217 million and is expected to close by the end of the year.
Wetzel’s Pretzels is a franchisor and operator of QSR units in the snack category. Its 350-plus locations — 90 percent of which are franchised — are in 25 U.S states, as well as Canada and Panama. During the last 12 months, total network sales have reached almost $245 million, serving nearly 21 million customers. The deal also includes Twisted by Wetzel’s, a new street concept the chain is developing.
“This transaction represents another key acquisition for MTY as it adds another iconic brand to its U.S. portfolio,” Eric Lefebvre, Chief Executive Officer of MTY, said in a news release. “The transaction enhances MTY’s footprint in the snack category, with Wetzel’s Pretzels’ strong network of franchise partners, well-run corporate-owned locations and a best-in-class management team.”
MTY operates and franchises about 80 restaurant brands, including Blimpie, Cold Stone Creamery, La Salsa and Planet Smoothie.