Canadian fast food giant Cara, owner of the St-Hubert rotisseries, has bought the steak house chain restaurant The Keg for $ 200 million.
“There are opportunities in Canada and the United States for The Keg,” said Cara President and CEO Bill Gregson. In addition to The Keg restaurants, Cara also adds to its brand portfolio the Landing Group restaurants, The Bier Markt and Milestones, also part of Keg Restaurants.
With this acquisition of 106 stores, Cara will now have a network of 1365 restaurants and annual sales of more than $ 3.4 billion.
Cara, which purchased for $ 540-million St-Hubert Rotisseries in 2016, will add $ 105 million in cash and 3.8 million subordinate voting shares ($ 24.93) to the Keg Restaurants group. As part of the transaction, Keg Restaurants’ CEO David Aisenstat will now oversee Cara’s high-end casual brands, including The Bier Markt, Landing Group and Milestones. David Aisenstat will also become Vice Chairman of Cara’s Board of Directors.
According to Cara, the acquisition of Keg Restaurants provides synergy opportunities in marketing, real estate and overall costs. The Keg Restaurants group’s 106 restaurants generate annual sales of $ 612 million.
Cara, Canada’s oldest and largest chain of full-service restaurants, includes Harvey’s, St. Hubert, Swiss Chalet, East Side Mario’s, New York Fries, Montana’s, Burger Priest and Kelsey’s.