MTY Food Group Inc. is acquiring Mr. Submarine Ltd. for $23 million in cash.
The Montreal-based franchisor and operator of quick service restaurants, including Country Style and Yogen Früz, said the acquisition is its biggest to date.
There are about 335 Mr. Submarine outlets operating under franchise or operator agreements, and they generated sales of more than $100 million for the 2011 fiscal period.
The transaction is expected to be completed on or before Oct. 31 and requires regulatory approvals.
The purchase of Toronto-based Mr. Submarine will bring MTY’s network to more than 2,070 outlets throughout Canada, up from 1,736.
The companies have retained the services of Davis LLP to assist in the transaction.