Happy Belly Food Group has exercised the option to buy the remaining 50% interest in Pirho Fresh Greek Grill in Canada.
Pirho Fresh Greek Grill operates in the fast casual dining space, offering bowls, wraps and pittas with a Greek-inspired menu.
The two businesses first formalised their partnership in March 2023, when they entered into a definitive franchise acquisition agreement.
At that time, the parties created a joint venture company (JVCo) to drive franchise rollout and brand development for Pirho.
To secure an initial 50% holding in the JVCo, Happy Belly agreed to issue common shares valued at C$250,000 ($181,617) at closing.
The JVCo received these shares, with ownership split equally between Happy Belly and Pirho founder George Plagakis and his family.
The arrangement also granted Happy Belly the right, at its discretion, to purchase the remaining 50% stake at a later date.
Announcing the exercise of that option, Happy Belly CEO Sean Black said: “Acquiring the remaining 50% of PIRHO is a significant milestone for Happy Belly as we move towards 100% ownership of the brand. Happy Belly will acquire the remaining 50% of the business on a debt-free basis at a multiple of 7.5x TTM EBITDA [trailing twelve months earnings before interest, taxes, depreciation and amortisation].
“Happy Belly 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.
“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.”
Last month, Happy Belly Food Group signed an area development agreement for its Yolks Breakfast restaurant concept in Alberta, Canada.
“Happy Belly takes full control of Pirho Fresh Greek Grill” was originally created and published by Verdict Food Service, a GlobalData owned brand.
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