Papa Murphy's acquired by MTY Food Group

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV $100–350M

Context

MTY Food Group Inc., a leading Canadian multi-brand restaurant franchisor, announced on April 11, 2019, that it had entered into a definitive merger agreement to acquire Papa Murphy's Holdings, Inc., the largest U.S. take-'n'-bake pizza chain. The acquisition represented MTY's strategic entry into the massive U.S. pizza category, bringing the fifth-largest pizza chain by system size into its diversified portfolio. Papa Murphy's distinctive take-'n'-bake model—freshly handcrafted pizzas sold ready-to-bake at home—offered clear differentiation from traditional pizza delivery and dine-in competitors while capitalizing on growing consumer demand for convenient, high-quality home meal solutions. The deal added 1,437 locations across 37 U.S. states, Canada, and the UAE to MTY's existing network, significantly strengthening its U.S. presence and creating immediate category leadership in pizza franchising. This cross-border transaction exemplified franchise platform consolidation, demonstrating strong investor appetite for category-defining concepts within fragmented markets.

Papa Murphy's, which reported an EBITDA margin of [members only] in 2018, is valued in this transaction at an EV/EBITDA multiple of 5x–12x.

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Target

Papa Murphy's Holdings, Inc. is the franchisor and operator of the largest take-'n'-bake pizza brand and the fifth-largest pizza chain in the United States, headquartered in Vancouver, Washington, United States. The company specializes in fresh, hand-crafted pizzas made with high-quality ingredients that customers bake at home, along with salads, sides, and desserts. As of December 31, 2018, Papa Murphy's operated 1,437 locations: 1,331 franchised and 106 corporate-owned stores across 37 U.S. states, Canada, and the United Arab Emirates. The chain has received over 60 industry awards since 2001 from sources like Zagat, Consumer Reports, and Technomic for best pizza chain. The business model emphasizes franchise growth, digital ordering, and a customizable experience capitalizing on dine-in trends with convenient home baking. Revenue came from franchise royalties, company store sales, and advertising fees. Strategically, the company implemented a refreshed corporate strategy focusing on digital platforms and brand refocus, creating positive momentum.

Ent. Value

$100–350M

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

5x–12x

EV / EBIT

[members only]

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2018

2017

Other operations with MTY Food Group

Other operations with MTY Food Group
Date	Acquirer	Target	Country	Sector
08/2022	MTY FOOD GROUP	BBQ HOLDINGS	UNITED STATES	Restaurants / Chains
07/2016	MTY FOOD GROUP	KAHALA BRANDS	UNITED STATES	Restaurants / Chains

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REFERENCES

Valuation range: EV $100–350M

Revenue range: $100–200M

EBITDA range: $25–50M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 5x - 12x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Papa Murphy's by MTY Food Group are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: papa murphy's

FAQ

What transaction does this page cover?

This page covers MTY Food Group’s acquisition of 100% of Papa Murphy's, an American company specialised in Hospitality, in 2019.

How was the acquisition of Papa Murphy's by MTY Food Group valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $100–350M band, its EV/EBITDA multiple within the 5x - 12x range, and its EV/revenue multiple within the 1x - 3x range. Exact figures are available to members.

What were Papa Murphy's’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Papa Murphy's generated annual revenue estimated in the $100–200M range and EBITDA in the $25–50M bracket (FY 2018). Detailed financial figures are available to members.

What sources support the information on this transaction?

Transaction data and operational intelligence were compiled from independent financial press reporting by specialized M&A publications.

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