News

Kahala Brands merges with major Canadian quick-service franchisor

May 26, 2016

Kahala Brands Ltd, parent company of 18 brands, including Blimpie, Cold Stone Creamery and Johnnie's New York Pizzeria, announced it has signed an agreement to merge with MTY Food Group, a franchisor and operator of 40 concept restaurant brands headquartered in Montreal.

MTY is a leading Canadian quick-service restaurant industry franchisor and operator, with locations mostly in Canada, along with 14 other countries worldwide. System-wide sales are more than $1 billion Canadian among its 40 brands, according to a company release.

The closing of the partnership is expected to happen within the next 75 days and a statement will be furnished to all Kahala Brands stockholders within approximately the next 10 business days.

Immediately following the closing of the merger, Kahala Brands will continue to be operated out of its current headquarters in Scottsdale, Arizona, according to the release.