RE:The Acquisition detailsConsensus targets for MTY before the major deal was $38 to $40.
lets say $39.
So, at yesterdays close, the new acquisition boosted the market cap just $75 million above its Kahala deal.
Kahala will generate $41 million in extra Ebitda versus about $49 million for the existing business.
Which is less than 2 times Kahala Ebitda.
Doing a few calculations taking into account the additional Ebitda less extra interest payments, I come up with a new fair value of about $55.
We shall see how the upgrades turn out..