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Competing offers from Serruya Private Equity and Recipe Unlimited Corporation for MTY Food Group Inc. may have escalated to C$60 per share following weekend negotiations, according to industry sources. This represents a significant jump from the C$52-53 per share bids reported last week.
MTY shares closed Thursday at C$42.41, up 1.19%, though the 29% gap between trading prices and reported offers indicates market skepticism until a formal deal announcement confirms terms.
The Bidders
Serruya Private Equity, a Toronto-based firm specializing in restaurant investments, previously owned Kahala Brands before selling it to MTY in 2016 for $300 million. This history gives Serruya intimate knowledge of MTY’s operations.
Recipe Unlimited Corporation, Canada’s largest restaurant operator with brands including Swiss Chalet and Harvey’s, sees MTY as a strategic opportunity to create a dominant franchise platform combining over 8,000 locations.
Deal Context
The acquisition speculation follows MTY’s January 21 announcement of a 12% dividend increase to C$0.37 per share quarterly. The Montreal-based franchisor operates over 80 restaurant brands including Thai Express, Cold Stone Creamery, and Papa Murphy’s across more than 7,000 locations.
If accurate, a C$60 offer would value MTY at approximately C$1.37 billion, representing a 41% premium over current trading prices. However, the significant spread suggests investors are waiting for official confirmation before pricing in the acquisition.
What’s Next
Any deal would require Competition Bureau approval and potentially Investment Canada Act review, adding 3-6 months to closing timelines. Neither MTY Food Group, Serruya Private Equity, nor Recipe Unlimited have confirmed the reported offers.
Market participants expect an official announcement could come within weeks if negotiations have progressed as sources suggest.
Disclaimer: The C$60 figure is unconfirmed market speculation. This article is for informational purposes only and does not constitute investment advice.
