Salsa Fresh parent to acquire Wetzel’s Pretzels for $207M

Snack category QSR chain represents $245M in incremental, annualized sales, 350 locations

MTY Food Group agreed to acquire Wetzel’s Pretzels for $207M USD through its MTY Franchising USA, Inc. subsidiary. Wetzel’s Pretzels, with 350 locations, has built a presence in 25 states in the United States, as well as in Canada and Panama. Wetzel’s, through its 90%-franchised enterprise, generated approximately $245M systemwide sales in the trailing 12 months across 21 million transactions.

The Board of Directors of both companies approved the merger agreement. MTY will fund the $207M transaction through cash from a revolving credit facility and cash on hand. The revolving credit facility amount was recently negotiated through a syndicate of banks, and the maturity was extended to October 2025. The purchase of Wetzel’s Pretzels (COP WP Parent, Inc.) in the cash-for-stock deal will be immediately accretive to earnings, noted a statement from MTY.

MTY owns well-known restaurant brands, including Papa Murphy’s, Salsa Fresh, ManchuWok, and Pinkberry.

Through Wetzel’s Pretzels, Montreal-based MTY will own a soft pretzel brand that provides higher exposure to the snack category and reduces the seasonality of its business. Wetzel’s is a category leader that has shown additional promising revenue opportunities through its Twisted by Wetzel’s street concept.

In addition, MTY will increase its total brand unit count in the United States while also making the US business total 70% of total system sales. It will also grow to more than 4,200 stores here.

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Moreover, the Wetzel’s brand brings with it a seasoned management team, with a strong track record of leading the chain. The organization is also well-structured and its employees are experienced.

Eric Lefebvre, chief executive of MTY, commented on the acquisition of Wetzel’s Pretzels, “This transaction represents another key acquisition for MTY as it adds another iconic brand to MTY’s US portfolio. 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. Its products are extremely craveable and are recognized everywhere in the US by a broad range of customers. We look forward to exploring all the opportunities this transaction brings to both companies.”

The closing is subject to customary regulatory conditions, and is expected to finalize within the next 30 to 45 days.

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