MTY acquires sweetFrog Premium Frozen Yogurt

Canada’s MTY Food Group’s (MTY) subsidiary has completed the acquisition of all of the assets of the sweetFrog Premium Frozen Yogurt franchise system in a $35m deal.

MTY paid $28.9m from its cash on hand and existing credit facilities, while $2.6m in liabilities was assumed and $3.5m was held back.

Under the terms of the agreement, the 78 corporate-owned locations will convert to franchised locations under existing ownership.

MTY’s subsidiary initially signed an agreement on 4 September to acquire a majority of the assets of sweetFrog Premium Frozen Yoghurt franchise system.

At the time of the agreement, 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.”

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

The company currently operates 331 franchised/licensed restaurants, of which 323 are located in the US, while eight are located internationally. Over the last year, sweetFrog generated more than $92m in system sales.

With the completion of the acquisition, MTY has strengthened its position in the frozen treat category while also expanding its presence in the US.

MTY has combined sweetFrog’s operations and will run the franchising platform from its US headquarters in Scottsdale, Arizona, under the leadership of Jeff Smit.