MTY Food Group announced yesterday that it had successfully closed the acquisition of Kahala Brands. The deal closed without any delays after Kahala Brands shareholders approved the merger last week. It’s still a bit too early to tell if this merger was indeed the merger arbitrage idea of the year as I called it in an earlier blog post. The final payout price is still unknown since it remains subject to post-closing working capital adjustments. I don’t expect a negative surprise here, but we’ll see. Since I bought the stock at $139 and the expected value of the merger consideration is roughly $155 I think it will work out very fine. Hopefully the cash will hit my account soon.
Author is long Kahala Brands