At what enterprise value was KAHALA BRANDS acquired in 2016?

During the acquisition of KAHALA BRANDS by MTY FOOD GROUP in 2016, the company was valued at an estimated revenue multiple of below 5x. The transaction's Enterprise Value is estimated to be in the range of 300M - 700M USD. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Retail & Consumer industry currently tracks an average EBITDA multiple of 11.5x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of KAHALA BRANDS when it was acquired by MTY FOOD GROUP?

The estimated EV/EBITDA multiple for KAHALA BRANDS is in the range of 10x - 18x. For comparison, the Retail & Consumer sector currently shows an average EBITDA multiple of 11.5x. Join our community for free to access full valuation data and industry trends.

When was KAHALA BRANDS acquired by MTY FOOD GROUP?

KAHALA BRANDS was acquired by MTY FOOD GROUP in 2016.

What was the revenue of KAHALA BRANDS at the time of the deal?

The revenue of KAHALA BRANDS at the time of the deal is estimated to be in the range of 100M - 200M USD. Register for free to access the full transaction report and exact valuation multiples.

What was the EBITDA of KAHALA BRANDS during the acquisition?

KAHALA BRANDS's EBITDA is estimated to be in the range of 25M - 50M USD. Join our community for free to access complete and exact deal data.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the KAHALA BRANDS acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the KAHALA BRANDS deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://mtygroup.com/wp-content/uploads/2015/06/20160525-MTY-enters-into-an-agreement-to-acquire-the-shares-of-Kahala-Brands-v7.pdf

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Home Database Retail & ConsumerKAHALA BRANDS

07/2016

KAHALA BRANDS

Acquired by

MTY FOOD GROUP

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 300M - 700M USD

KAHALA BRANDS acquired by MTY FOOD GROUP

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 300M - 700M USD

Context

In a transformative cross-border transaction, MTY Food Group has completed the acquisition of 100% of the shares of Kahala Brands. The deal is classified as a Full Acquisition (100%), structured as a merger between a wholly-owned subsidiary of MTY and the target. This acquisition marks MTY’s entry into the United States, effectively doubling its scale with the combined entity. This strategic deal allows MTY to fully internalize Kahala’s profitable and scalable U.S. platform, moving its regional headquarters to Arizona to leverage local expertise. From a structural standpoint, the retention of Kahala's leadership team to head the U.S. operations facilitates a seamless integration. This deal highlights the ongoing trend of large-scale consolidation within the franchised restaurant sector, where Canadian incumbents are utilizing leveraged buyouts to capture the scale and market depth of the U.S. QSR industry, shifting from domestic leaders to North American heavyweights.

KAHALA BRANDS, which reported an EBITDA margin of LOGIN in 2015, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Retail & Consumer sector (11.5x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Kahala Brands, Ltd. is a leading global owner and franchisor of a diverse portfolio of quick-service restaurant (QSR) concepts. Headquartered in Scottsdale, Arizona, the company manages 18 distinct brands—including Cold Stone Creamery, Blimpie, and TacoTime—representing approximately 2,800 locations across 27 countries. Kahala operates a sophisticated platform focused on brand development, supply chain management, and franchisee support, enabling its various concepts to achieve significant operational scale and market penetration. From a market positioning perspective, Kahala is a specialized powerhouse in the franchised restaurant sector, known for its ability to manage a heterogeneous portfolio of lifestyle and food brands under a unified corporate structure. Its business model is highly capital-light and scalable, centered on royalty streams and franchise fees rather than direct restaurant operations. This structure generates high visibility for cash flows and allows for rapid international expansion through master franchise agreements.

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REFERENCES

Valuation range: EV 300M - 700M USD

Revenue range: 100M - 200M USD

EBITDA range: 25M - 50M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of KAHALA BRANDS by MTY FOOD GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).