Cara Operations Limited: Completes Sale Of Health Services Business.Business Editors TORONTO--(BUSINESS WIRE)--April 29, 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 ("Cara") (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAO.) (TSE:CAO.A.) today announced that it has successfully completed the previously announced sale of the business carried on by Cara's Health Services health services Managed care The benefits covered under a health contract Division to Compass Group The British company Compass Group LSE: CPG is one of the largest food service businesses in the world. It provides catering services to many types of institutions, for example schools, hospitals, companies and nursing homes. Canada ("Compass"). The total proceeds of the transaction to Cara are approximately $30 million. Under the transaction, Compass Group also entered into a food service distribution agreement with Cara's distribution subsidiary, Summit Food Service Distributors Inc., to supply the Compass health services accounts in Canada, and Compass Group will also continue to have the opportunity to license Cara's brands in health services accounts, including Harvey's, Swiss Chalet
Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario. and Second Cup. "With the sale of our Healthcare Services Division, and our recent acquisition of the remaining outstanding shares of the Second Cup completed, together with our recently announced intention to acquire a 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 the popular Milestone's restaurant concept, Cara is now positioned as a premiere integrated restaurant company, allowing us to dedicate our human and financial resources on the accelerated growth of our core brands, commented Gabe Tsampalieros, Cara's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . 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. of approximately $1.8 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, Harvey's, Cara Air Terminal Restaurant Division, Cara Airport Services Division; Summit Food Service Distributors Inc., and Second Cup. Cara has a 61% ownership of Kelsey's International Inc., a multi-brand operator, operating Kelsey's Neighbourhood Bar & Grill, Montana's Cookhouse Saloon, and as a franchisee, Outback Steakhouse Restaurants. Cara is also currently the largest shareholder (38%) of The Spectra Group of Great Restaurants (SPA, SPA.A) a western Canadian based multi-concept restaurant operator, whose popular owned brands include the up-scale casual chain of Milestones restaurants and the Bread Garden bakery/cafe concept. Cara recently announced its offer to acquire a controlling interest in the Milestone's restaurant business in a cash and share transaction having a total value of $34.4 million, which would result in Cara no longer owning shares in Spectra. |
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