UDPATE 1-MTY Food to acquire Canada's Jugo Juice

TORONTO, April 27 (Reuters) - MTY Food Group Inc (MTY.TO) said on Wednesday it has agreed to buy the assets of Jugo Juice International Inc, a Canadian food chain that specializes in selling fruit smoothies, for C$15.5 million ($16.3 million) in cash.

The acquisition, which includes the Jugo Juice Canada Inc and Jugo Juice Western Canada Inc units, also comprises 1,250 square feet of office space.

Founded in 1998 in Calgary, Alberta, Jugo Juice has 133 outlets in seven provinces.

MTY, a Quebec-based operator of quick service restaurants, is looking to diversify with the deal, which it will fund with its cash on hand.

($1=$0.95 Canadian) (Reporting by S. John Tilak; editing by Peter Galloway)