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Papa Murphy's Announces Completion of Nine Unit Acquisition in Minneapolis

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Papa Murphy's Holdings, Inc. (Nasdaq: FRSH) the world's leading take 'n' bake pizza franchise today announced the acquisition of nine Papa Murphy's stores in Minneapolis, MN for approximately $3.4 million. The Company completed the acquisition of the locations from a single franchisee in mid-August, bringing the company-owned store count to 24 units in the Minneapolis market. Overall, Papa Murphy's and its franchisees operate 78 stores in the Minneapolis market.

The transaction, which is not expected to impact reported earnings in the near-term, will contribute approximately $560,000 of EBITDA annually, and would be accretive to Papa Murphy's earnings per share by approximately $0.01 to $0.02 on an annual basis before considering the amortization of re-acquired franchise rights. The Company and its franchisees expect to open a total of five new stores in Minneapolis by the end of 2015.

"With the acquisition of these stores, we are further solidifying our commitment to and belief in the significant growth opportunity for the brand that exists in the Minneapolis market," said Ken Calwell, CEO of Papa Murphy's. "Minneapolis, our largest market for company-owned stores and our third largest market system-wide, continues to be an important and strong performing DMA for our brand. As we look to expand our presence in both existing and new markets, we will continue to explore strategic opportunities that are in alignment with our growth strategy."

"We are pleased by the Company's continued investment in building out the brand in Minneapolis," said Mike Cooper, who owns nine Papa Murphy's stores across three markets and is the President of the Minneapolis Co-op. "The Company's commitment to operating stores well and partnering with other owners in the market on growth initiatives has benefited the entire market."

 

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