KAHALA BRANDS acquired by MTY FOOD GROUP
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 (11.0x).
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.
-> Deep-dive in Retail & Consumer market trends
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.
Ent. Value
LOGIN
Equity Value
LOGIN
Multiples
EV / Revenue
LOGIN
EV / EBITDA
LOGIN
EV / EBIT
LOGIN
Historical Financials (USD)
Similar deals in Retail & Consumer
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 12/2016 | ICG | PARK HOLIDAYS | UNITED KINGDOM | Hospitality & Leisure | The sale of Park Holidays UK by Caledonia Investments occurs after a 3-year holding period, during which the holiday park network underwent substantial expansion, growing from 23 to 26 establishments. This secondary buyout enables Intermediate Capital Group to enter the still highly fragmented UK outdoor hospitality market, with the goal of consolidating independent operators and modernizing existing infrastructure. Financing provided by the new majority shareholder will be crucial in supporting this expansion strategy, aimed at bolstering Park Holidays UK's market position |
| 10/2016 | GENERAL ATLANTIC / VALEDO PARTNERS | JOE & THE JUICE | DENMARK | Hospitality & Leisure | General Atlantic, a global growth‑equity firm, entered the capital of Joe & the Juice by acquiring a minority stake through a strategic growth‑equity round, joining existing shareholder Valedo Partners as a co‑investor. The transaction is designed to support the chain’s global expansion, particularly in the United States and the UK, by providing capital to open up to 150 new stores in the U.S. over the subsequent years and to strengthen its omnichannel and brand‑development capabilities. At the time of the investment, Joe & the Juice operated about 160 outlets worldwide, with most locations concentrated in Northern Europe and the UK, and a nascent but growing presence in Asia and the U.S... |
| 07/2016 | JAB BEECH | KRISPY KREME DOUGHNUTS | UNITED STATES | Hospitality & Leisure | JAB Beech completed its acquisition of Krispy Kreme Doughnuts in July 2016 through a definitive deal that had originally been announced in May of that year. The deal was approved by Krispy Kreme shareholders at a special meeting and completed after the company received the required regulatory and shareholder approvals. The strategic logic was to place one of the most recognizable doughnut brands in the world into JAB's growing consumer portfolio, alongside its coffee and beverage assets. Krispy Kreme offered a premium sweet bakery concept with global brand awareness, a loyal customer following, and meaningful runway in coffee, international franchising, and wholesale distribution |
| 05/2016 | SEVEN2 | SANDAYA | FRANCE | Hospitality & Leisure | APAX PARTNERS (which became SEVEN2 in 2023) acquired a majority stake in Sandaya, alongside the founders. The aim of the transaction was to provide the group with significant financial resources in order to accelerate the consolidation of the fragmented French camping market and expand its presence in Europe. |
| 05/2016 | PUBLIC MARKETS (IPO) | BASIC-FIT | NETHERLANDS | Hospitality & Leisure | Basic-Fit N.V. announced the commencement of an initial public offering on Euronext Amsterdam, issuing up to 24,666,667 new ordinary shares and up to 2,000,000 existing shares held by current shareholders. The offering period opened on 31 May 2016 for institutional and retail investors, with a pricing range set between €15 and €20 per share and an over‑allotment option for an additional 15 percent of the total shares. The prospectus detailed the allocation process, lock‑up agreements for selling shareholders, and the intended use of net proceeds to refinance debt and fund further club expansion |
| 04/2016 | APHEON (EX ERGON) / BPIFRANCE | LOOPING GROUP | FRANCE | Hospitality & Leisure | Ergon Capital, in partnership with Bpifrance, has completed the acquisition of a majority stake in Looping Group from H.I.G. Capital. The transaction marks the second leveraged buyout for the group since its inception and is designed to support the next phase of its European expansion. The management team, which has been instrumental in the group's rapid development, remains a significant shareholder and will continue to execute its successful acquisition-led growth strategy. The deal was supported by a senior debt package structured to provide the group with the necessary flexibility for capital expenditures and future bolt-on acquisitions |
| 12/2015 | PAI PARTNERS | GROUPE B&B HOTELS | FRANCE | Hospitality & Leisure | PAI Partners entered into exclusive negotiations with The Carlyle Group and Montefiore Investment to acquire 100% of the B&B Hotels Group alongside the existing management team. The transaction was funded by PAI Europe VI. The strategic rationale for PAI is to capitalize on one of the most highly valued brands in the European hospitality industry to accelerate the pace of hotel openings both in Europe and internationally. For Carlyle and Montefiore, this exit marks the conclusion of a significant value-creation cycle that transformed B&B into a truly pan-European platform |
| 11/2015 | BC PARTNERS | CIGIERRE | ITALY | Hospitality & Leisure | BC Partners agreed to acquire a majority stake in Cigierre from founder and CEO Marco Di Giusto, L Capital, and Paladin Capital Partners in a secondary‑type buy‑out transaction, with the deal expected to close in early 2016 subject to regulatory approvals. The transaction is structured as a classic European private equity‑backed LBO, with BC Partners‑advised funds providing the controlling equity investment while the founder retains a minority stake and continues as CEO, preserving management continuity and entrepreneurial alignment |
| 09/2015 | ICG | COURTEPAILLE | France | Hospitality & Leisure | The transaction resulted from a debt-for-equity swap, culminating in Intermediate Capital Group (ICG) taking exclusive control of Courtepaille. The process originated from a 2011 Leveraged Buyout (LBO) in which ICG had provided a significant unitranche loan to finance the acquisition by the private equity firm Fondations Capital. Following the LBO, Courtepaille experienced slower-than-anticipated growth, leading to a disagreement between the majority shareholder, Fondations Capital, CM-CIC (entered in 2013) and the creditor, ICG, over the terms of the debt repayment |
| 07/2015 | BC PARTNERS | CÔTE RESTAURANTS | UNITED KINGDOM | Hospitality & Leisure | BC Partners has acquired a majority stake in Côte Restaurants from its previous owners in a transaction that transitions the company into its next phase of national expansion. The deal involves the existing senior management team, led by Alex Scrimgeour, Harald Samuelsson, and Paul Aitchison, retaining a significant minority shareholding to ensure leadership continuity. The strategic rationale for the acquisition centers on backing a highly successful, proven restaurant format to continue its aggressive roll-out across the UK (67 restaurants at the date of the operation) |
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: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Target: kahala brands
Acquirer: mty food group