Restaurant hulk Cara Operations to buy The Keg in $200M takeover

The owners of some of a biggest grill bondage in Canada is about to get a bit bigger after Cara Operations struck a understanding to buy steakhouse sequence Keg Restaurants Ltd. for $200 million.

The dual companies announced a deal on Tuesday that will see Vaughan, Ont.-based Cara take over The Keg sequence of 106 steakhouses and supplement it to a fast of 1,259 restaurants in North America.

Cara already owns some of a many obvious restaurant chains in Canada, including:

• Swiss Chalet. 
• Harvey’s. 
• St‐Hubert. 
• Milestones. 
• Montana’s.
• Kelsey’s. 
• East Side Mario’s. 
• New York Fries.
• Burger’s Priest. 
• Prime Pubs.
• Original Joe’s.
• State Main.
• Elephant Castle 
• Bier Markt. 
• Landing restaurants.
• The Pickle Barrel.

Across a network, Cara restaurants racked adult some-more than $2 billion in sales final year. The Keg, meanwhile, requisitioned only over $600 million from 106 locations.

Vancouver-based Keg’s CEO, David Aisenstat, will sojourn with a association and take over control of Cara’s other higher-end restaurant brands as partial of a deal.

Cara is charity $105 million in money and roughly 4 million shares in Cara to a Keg’s dual shareholders — Aisenstat, and Fairfax Financial Holdings Limited, which bought 51 per cent of The Keg in 2013.

The understanding won’t change a taken over company’s attribute with TSX-listed Keg Royalties Income Fund, that pays distributions to investors by collecting 4 per cent of sales from corporate and franchise-owned Keg restaurants and owns egghead skill associated to The Keg name.

The dual companies contend they design a understanding to turn central by a finish of March, and Cara skeleton to change a name of a association to simulate a transaction. 

Article source: http://www.cbc.ca/news/business/the-keg-cara-operations-1.4499652?cmp=rss