BBQ - MTY Food to acquire BBQ for $17.25/share in an highly accretive transaction

August, 09 2022 07:57 AM BBQ Holdings Inc.

MTY Food ( OTCPK:MTYFF ) and BBQ ( NASDAQ: BBQ ) entered into a definitive merger agreement wherein the former will acquire all of the issued and outstanding common shares of the latter for cash consideration of $17.25/BBQ share representing total transaction value of ~$200M including BBQ net debt.
The transaction consideration will be 100% funded in cash; MTY will use its cash on hand and its existing credit facility to fund the cash consideration.
On transaction completion (expected by Q4 of 2022), BBQ will become a subsidiary of MTY and the shares of BBQ will be de-listed from Nasdaq.
As of Aug. 9, 2022, BBQ operates 200+ franchised and 100+ corporate-owned restaurants; for FY22 ending Jan. 1, 2023, the company is expected to generate 12-month run-rate system sales and cash EBITDA between $685M to $725M and $25.5M and $27.5M, respectively.
With this Transaction, MTY will add leading restaurant brands to its network which will reach a total of ~7K locations, including 3.9K+ in U.S.
The transaction is expected to be immediately accretive to MTY’s free cash flow per share; transaction represents a 7.5x multiple of BBQ mid-point FY2022E run-rate cash EBITDA guidance of $26.5M.

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