PE-backed Foodtastic to buy fast-food restaurant chain Freshii

The purchase price is C$2.30 per share in cash, representing a total consideration of about C$74.4 million on a fully diluted basis.

  • The deal is expected to close in the first quarter of 2023
  • Foodtastic has been backed since 2018 by Restaurant Royalty Partners, a joint venture of Oaktree Capital Management and JHR Capital
  • Daniel Haroun serves as CEO of Freshii, while Peter Mammas is president and CEO of Foodtastic

Foodtastic, a Montreal-based franchisor of restaurant brands, has agreed to acquire Freshii, a Toronto-based healthy fast-food restaurant chain.

The purchase price is C$2.30 per share in cash, representing a total consideration of about C$74.4 million on a fully diluted basis. The deal is expected to close in the first quarter of 2023.

Daniel Haroun serves as CEO of Freshii, while Peter Mammas is president/CEO of Foodtastic.

On the deal, Freshii’s Haroun said in a statement, “We believe that this transaction recognizes the tremendous value of the Freshii brand. For almost 20 years, our incredibly passionate franchisee and other business partners and team members have been delivering on the mission of making healthy food accessible and building a leading Canadian health food 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 has been backed since 2018 by Restaurant Royalty Partners, a joint venture of Oaktree Capital Management and JHR Capital. Earlier this month, Foodtastic closed a C$175 million revolving debt facility, led by National Bank of Canada, to fund acquisitions.

Foodtastic’s brands include Second Cup, Pita Pit, Milestones, Fionn MacCool’s, Shoeless Joe’s, Au Coq, La Belle et La Boeuf, and Monza.

Freshii was founded in 2005. It currently operates 343 locations in North America and internationally. Previously venture capital-backed, Freshii went public in 2017 on the Toronto Stock Exchange, raising more than C$125 million.