Toronto, Ontario-based Cara Operations Ltd, one of Canada’s leading integrated foodservice companies, has announced that it, together with Wayne Holm, has entered into an Arrangement Agreement to acquire the Milestone’s restaurant business from the Spectra Group of Great Restaurants.
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The buyout will be formed by a cash and share transaction valued at C$34.4m (US$21.6m), plus the assumption of related liabilities.
Under the offer Cara-Holm will surrender the 6.64 million shares of Spectra held by them for cancellation and make a cash payment of C$15m to Spectra. As a result, Cara and Holm will each cease to be shareholders of Spectra. Milestone’s Restaurants, the new company established to own and operate the Milestone’s business, will be owned approximately 74% by Cara and 26% by Wayne Holm, who will also be its president.
Milestone’s has grown from a single location on Vancouver’s English Bay in 1989 to 20 restaurants including 15 in British Columbia, four in the Toronto, Ontario area and one in Kirkland, Washington. Milestone’s, with annualised system sales in excess of C$70m, is an upscale casual restaurant concept that serves high quality fresh foods with a strong emphasis on globally inspired flavours.
Gabe Tsampalieros, Cara’s president and CEO commented: “We are excited by the opportunity to add Milestone’s to Cara’s already strong portfolio of leading restaurant brands. Milestone’s is a very successful, rapidly growing restaurant chain with its focus on the upper end of the casual-style dining segment.
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By GlobalData“It is a complementary fit with Cara’s existing brand portfolio. Furthermore, by divesting our overall interest in Spectra, this transaction underscores Cara’s stated commitment to continually sharpen its focus and to concentrate on the accelerated development of its core growth brands.
“I am extremely pleased that Wayne Holm, who has extensive restaurant industry experience in Canada and the US, has agreed to become a significant investor in and the new President of Milestone’s. Wayne’s past experience with the brand and with Cara will be invaluable to ensuring the continued successful evolution of the Milestone’s brand.”
The completion of the transaction is subject to, among other things, the approval of regulatory authorities, as well as approval by Spectra’s shareholders.
