Foodtastic to acquire Canadian fast casual restaurant franchise Freshii
Canadian restaurant brands franchisor Foodtastic will acquire Freshii, a healthy fast food restaurant chain, in an all-cash transaction valued at around CAD 74.4 million ($55 million) to increase its portfolio and sales.
As per the terms of the deal, shareholders of the Toronto Stock Exchange (TSX) listed Freshii will be paid $2.3 per share.
The acquisition by Foodtastic is expected to increase Freshii brand growth and franchisee profitability.
Established in 2005, Freshii is a Canadian fast casual restaurant franchise, which now runs 343 restaurants in North America and worldwide.
Daniel Haroun — Freshii CEO said: “We believe that this transaction recognizes the tremendous value of the Freshii brand.
“We believe that Freshii’s brand, franchise network and talent will benefit from Foodtastic’s greater scale – in particular, we believe that this combination will improve Freshii’s potential for growth, enhance franchisee profitability, and generate additional opportunities for our CPG business.”
Foodtastic to acquire Canadian fast casual restaurant franchise Freshii. Photo courtesy of Raysonho @ Open Grid Scheduler / Scalable Grid Engine / Wikimedia Commons.
With the rights to acquire 100% of the business through Q1 2025, Freshii acquired a majority stake in Canadian online health and wellness product retailer Natura Market Ecommerce to further increase its omni-channel footprint in the health and wellness business lines.
Freshii’s consumer-packaged goods retail partners include Walmart Canada, ONroute, Shell Gas and Convenience Stations, and Air Canada.
Peter Mammas — Foodtastic President and CEO said: “We have been watching Freshii for some time – it is a great fit for us, and helps Foodtastic expand into a new category.”
Foodtastic is entitled to a CAD 2.6 million ($1.9 million) termination fee in the case of cancellation of the arrangement agreement under some circumstances.
Osler, Hoskin & Harcourt is acting as legal advisor to Freshii and the company’s Special Committee that supervised the consideration and negotiation of the transaction.
Fasken Martineau DuMoulin is acting as legal advisor to Foodtastic.
Anticipated to complete in the first quarter of 2023, the deal is subject to shareholder and court approvals as well as certain other customary closing conditions.
Earlier this month, Foodtastic acquired Canadian-owned chain Quesada Burritos & Tacos.
Foodtastic, which was founded in 2016, owns brands, including Second Cup, Pita Pit, Milestones, Shoeless Joe’s, Fionn MacCool’s, La Belle et La Boeuf, Au Coq, and Monza.