Foodtastic Inc., the Montreal-based company behind 30 brands including Milestones, Freshii, Second Cup and Dunkin's forthcoming foray into Canada, went public Tuesday with a takeover offer for MTY Food Group Inc.
MTY, which is also headquartered in Montreal, operates the Thai Express, Manchu Wok, Country Style and Big Smoke Burger banners, among many others.
The pitch valued at $982 million came about two weeks after Foodtastic said MTY rebuffed a prior takeover attempt.
MTY said Tuesday that it had given Foodtastic multiple extensions to an exclusivity window to secure financing and close a transaction but said when MTY's board evaluated the proposals from Foodtastic, it determined the offers were "not in the best interests of the corporation or its shareholders."
Foodtastic's latest proposal was publicized within minutes of MTY announcing that Victor Mandel, a member of the company's board, would immediately replace chief executive Eric Lefebvre in the top job.
Foodtastic chief executive Peter Mammas said he is making a play for MTY because he long admired the business, but he thinks it has room for improvement.
MTY launched a strategic review in November 2025, when its stock was under pressure and rising prices, competition and economic volatility were threatening the business.
The company warned the process could end in a sale, but when it wrapped up last month, there was no buyer and MTY instead opted to reshape its business, including optimizing its portfolio of brands.
Foodtastic has charged that MTY has "acquired too many concepts — some good and some bad — and it is not generating organic growth in the aggregate."
Foodtastic's offer is structured as $43 per MTY share in cash — a 32 per cent premium on MTY's current share price.
MTY shares closed at $32.75 on the Toronto Stock Exchange on Monday.
Foodtastic, which first made a proposal to the MTY board on Oct. 15 and reiterated the plan on Oct. 20, said it was "disappointed" the offer was rejected.