Happy Belly Food Group Inc., a leader in acquiring and scaling emerging food brands says it has exercised its right to acquire the remaining 50% of PIRHO Fresh Greek Grill, making the brand a 100% wholly-owned subsidiary of Happy Belly.
PIRHO Fresh Greek Grill serves gourmet bowls, wraps, and pitas as a fast casual Greek restaurant with the fresh wholesome tastes of Greece and its delicious traditional foods, said Happy Belly in a news release.
“Acquiring the remaining 50% of PIRHO is a significant milestone for Happy Belly as we move towards 100% ownership of the brand,” said Sean Black, Chief Executive Officer of Happy Belly.
Happy Belly said it will acquire the remaining 50% of the business on a debt-free basis at a multiple of 7.5x TTM EBITDA. Happy Belly said it intends to satisfy the purchase price by transferring the required percentage ownership of the JVCo’s existing Happy Belly shares to brands founder and family shareholders. The value of the shares will be recognized at current market values and transferred on the day of close of this transaction. Final transaction details to be announced at the close of the transaction after all reconciliations are completed (estimated to be completed sometime in Q3).
By leveraging our share price appreciation to acquire the remaining 50%, Happy Belly will complete this transaction without the use of cash or issuing any new shares causing dilution, it added.
“This transaction validates the value Happy Belly creates for our joint venture partners and validates our acquisition strategy based on reduced risk when partnering with founders. Our model paves the way for sustained and predictable M&A growth across our portfolio of emerging brands. By balancing organic expansion in our core markets with a nationwide rollout, we’re positioned to deliver long-term value. We’re confident our multi-brand platform will drive strong results, attract top-tier franchise partners, and secure prime real-estate opportunities across Canada. Happy Belly’s portfolio consists of 686 contractually committed retail franchise locations across multiple emerging brands in various stages of development, construction, and operation. Our predictable and disciplined growth engine continues to deliver measurable results as we expand our brands across Canada and the U.S. to create long-term value for our shareholders,” explained Black.
“We strongly believe that food can bring people together and inspire colorful conversations. PIRHO culture is rooted in old-world Greek traditions with an emphasis on family and community. The wholesome ingredients, the careful preparation, the irresistible aromas, the delicious food and of course the human interaction all make for a warm and inviting atmosphere. During our visits to Greece, this nurturing environment left a deep and lasting impression with us. So much so that it led to the creation of PIRHO True Food Grill. The best of Greece right here in Ottawa! In our fast-paced world, taking the time to connect with friends and family has never been more important. You deserve to enjoy those precious moments and connect with your loved ones, in real life, with True Food. Join us for lunch or dinner at PIRHO Grill and fuel your soul.”
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