Cara Acquires Controlling Interest in the Milestone's Restaurant Business from the Spectra Group of Great Restaurants.Business Editors TORONTO--(BUSINESS WIRE)--June 10, 2002 Cara Operations Cara Operations Limited is a Canadian company that provides catering services to airlines and operates several restaurant and coffee shop chains including: Harvey's, Swiss Chalet, Kelsey's , Milestones and Montana's. The company is based across from Lester B. Limited (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAO.TO) (TSE:CAO.A.TO) ("Cara") announced today that it, together with Wayne Holm ("Holm"), has successfully completed the acquisition of the Milestones' Restaurant chain from The Spectra Group of Great Restaurants ("Spectra") (SPA, SPA.A) in a cash and share transaction valued at $34.4 million, plus the assumption of related liabilities. "We are excited and pleased to have now completed this transaction, so that we may focus our energies on the further growth of this great brand. Milestone's is a very successful, rapidly growing restaurant chain with its focus on the upper end of the casual-style dining segment. It is a complementary fit with Cara's existing brand portfolio. We have two new Milestone's locations under development in the Toronto market, at Yorkdale Mall and in the Islington/Queensway neighborhood, which we anticipate will be highly successful. The divestiture of our overall interest in Spectra underscores Cara's stated commitment to continually sharpen its focus and to concentrate on the accelerated development of its core growth brands. The Milestone's acquisition coupled with our acquisition of The Second Cup, and the divestiture of our healthcare services business earlier this year, clearly positions Cara with significant growth opportunities as Canada's leading integrated restaurant company." commented Gabe Tsampalieros, Cara's President and Chief Executive Officer. Pursuant to the transaction which was approved overwhelmingly by a vote of Spectra shareholders on June 5, 2002, Cara-Holm surrendered the 6.64 million shares of Spectra held by them for cancellation and made a cash payment of $15 million to Spectra. As a result, Cara and Holm ceased to be shareholders of Spectra. Milestone's Restaurants Milestone's Restaurants Inc. is a Canadian bar and grill restaurant headquartered in North Vancouver, British Columbia owned by Cara Operations. There are over 30 locations in British Columbia, Alberta and Ontario. Inc., the new company established to own and operate the Milestone's business, is owned approximately 74% by Cara and 26% by Wayne Holm, who will also be its President. About Cara Operations Limited With annual system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. in excess of $1.6 billion, Cara Operations Limited, based in Toronto, Ontario, Canada is one of Canada's leading integrated food service companies, providing employment for more than 31,500 Canadians in its owned and franchised operations. Cara's wholly owned businesses include Swiss Chalet
Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario. , Harvey's, Cara Air Terminal Restaurant Division, Cara Airport Services Division; Summit Food Service Distributors Inc., and Second Cup. In addition to its controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Milestone's, Cara has a 61% ownership of Kelsey's International Inc., a multi-brand operator, operating Kelsey's International Inc., a multi-brand operator, operating Kelsey's Neighbourhood Bar & Grill, Montana's Cookhouse Montana's Cookhouse is a Canadian restaurant headquartered in Mississauga, Ontario. There are restaurants located in Canada from coast to coast in addition to US locations in Michigan and New York State. Saloon, and as a franchisee, Outback Steakhouse Outback Steakhouse is a casual dining American restaurant chain based in Tampa, Florida with over 900 locations in 23 countries throughout North and South America, Europe, Asia, and Australia. Restaurants. To find out more about Cara Operations Limited (CAO; CAO.A) visit our website, www.cara.com. |
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