Canada's largest and oldest full-service restaurant Cara has completed the acquisition of Keg Restaurants for $200m, which consists of $105m in cash and more than 3.8 million Cara subordinate voting shares.
KRL president and CEO David Aisestat will retain his position in the firm and will join the Cara board as vice chairman. Meanwhile, Cara CEO Bill Gregson will continue in his post as chairman of the board.
Cara Operations and Keg Restaurants are majority owned or controlled by Fairfax Financial Holdings Limited.
Aisenstat will oversee Cara's higher-end casual brands such as Bier Markt, the Landing Group of restaurants and Milestones restaurants. The merger enables Cara to introduce into these brands the key success factors experienced by The Keg Steakhouse & Bar brand of Keg Restaurants.
More so, as previously announced, Cara intends to change its corporate name to reflect its new business composition that has evolved since 2013, growing from 5 to 16 brands over the same period.
Founded in 1883, Cara franchises and/or operates some of the most recognized brands in the country including Swiss Chalet, Harvey’s, St. Hubert, Montana’s, Kelseys, East Side Mario’s, New York Fries, The Burger’s Priest, Prime Pubs, Original Joe’s, State & Main, Elephant & Castle, and Pickle Barrel. Cara has 1,259 restaurants, 1,204 of which are in Canada.
Meanwhile, Vancouver-based Keg Restaurants is the owner/operator and franchisor of casual dining steakhouse restaurants operating under the trade name “The Keg Steakhouse & Bar” in Canada and in select markets in the United States.
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