Canada’s MTY signs deal to acquire sweetFrog assets

Canada-based MTY Food Group’s wholly owned subsidiary has entered an agreement to acquire a majority of the assets of sweetFrog Premium Frozen Yoghurt franchise system (sweetFrog) for around $35m.

Established in 2009, US-based sweetFrog offers a wide range of frozen yoghurt flavours and fresh toppings choices to its customers.

MTY US operations chief operating officer Jeff Smit said: “sweetFrog is an exciting brand serving premium quality frozen yoghurt and will fit perfectly within our portfolio of brands. We are extremely happy about everything this brand has to offer and the growth potential ahead.”

sweetFrog currently operates 254 franchised locations and 78 corporate-owned locations.

As per the terms of the agreement, the locations will convert to franchised locations under current ownership.

sweetFrog Enterprises chairman and CEO Patrick Galleher said: “With an executive of Jeff Smit’s calibre-leading US operations, MTY is the perfect organisation to lead sweetFrog during its next chapter of success.”

With the acquisition of sweetFrog, MTY intends to strengthen its position in the frozen treat segment and further expand its footprint in the US market.

Upon completion of the deal, the company plans to combine operations and run the franchising platform from its US headquarters located in Scottsdale, Arizona.

MTY plans to fund the acquisition using available cash on hand and the existing credit facilities.

The transaction is expected to be completed over the next 30 days, subject to multiple conditions customary for a transaction of this nature.