Ontario-based restaurant group Cara Operations is continuing its ownership expansion across North America by acquiring Canadian steakhouse chain The Keg for $200 million.
Cara Operations Ltd.’s struck the multi-million-dollar deal with Keg Resturants Ltd. on Tuesday, Janurary 23, adding 106 steakhouses to its portfolio of over 1,200 restaurants in North America.
Cara is the restaurant giant behind many well-known Canadian chains, including Swiss Chalet, Milestones and Original Joe’s.
The restaurant industry in Canada is dominated primarily by Cara, MTY Food Group Inc. and Restaurant Brands International Inc. The Keg purchase is Cara’s latest consolidation effort.
The $200 million sale price is comprised of $105 million in cash plus almost four million shares, payable to the Keg's two shareholders — Mr. Aisenstat, and Fairfax Financial Holdings Limited, which bought 51 per cent of The Keg in 2013.