March 9, 1998
Pretzelmaker ownership goes north
Canadian company looking to buy Denver-based franchise
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Beverly Vasquez Business Journal Staff Reporter
Pretzelmaker Inc., one of Colorado's fastest-growing private companies, is being sold to a Canadian company.
The Denver-based pretzel sellers have signed a letter of intent to be sold to MIS International Inc. for about $7 million, company officials confirmed.
Pretzelmaker, which ranked second on The Denver Business Journal's 1997 list of fastest-growing private companies, reported revenue of $5.7 million last year.
The company operates 220 locations in North America and Korea, primarily in malls, sports arenas and other high-traffic areas. Sales have increased significantly since Pretzelmaker moved its headquarters to Denver in 1995, when its revenue was about $2.1 million.
The increase can be attributed to the growing popularity of soft pretzels, said Chief Operating Officer Larry Feierstein, comparing it to the bagel craze.
Pretzelmaker also has increased its business by expanding its product line, Feierstein said. Last year the company introduced Pretzelmeals, which is a meal baked inside pretzel dough, and sales have been good. The company also recently introduced Pretzel Kids, a bendable toy that is included in kids' meals.
MIS International, an Ontario-based company that develops and franchises retail concepts, was looking for an acquisition in the soft pretzel industry and Pretzelmaker was a good candidate, said CEO Dan Masters.
"We already have a pretzel company and buying a competitor and consolidating the operations makes a lot of sense," he said. MIS International owns and operates the Pretzel Twister chain.
"Pretzelmaker is a good company with a good product and an excellent name," Masters said. "Pretzelmaker is very strong in the Midwest and Pretzel Twister is strong in the Southeast. Where Pretzelmaker is strong Pretzel Twister is not and vice versa."
Pretzelmaker has plans to grow to 300 by year's end, Feierstein said.
If the acquisition goes through, the U.S. pretzel operations of both companies most likely will be run out of the Denver office by local management, Masters said, and the Canadian operations of both brands would be run out of MIS International's Canadian offices.
c 1998, The Denver Business Journal |
