Canadian foodservice company Cara Operations Limited is teaming up with Wayne Holm to acquire the Milestone’s restaurant business. Current owner the Spectra Group of Restaurants will receive $34.4 million in cash and shares for the deal.
Cara and Holm will return their 6.64 million Spectra shares for cancellation and make an additional cash payment of $15 million. A new company will be set up to own and operate the business, Milestone’s Restaurants Inc., which will be 74% owned by Cara and 26% owned by Wayne Holm, who will also be its president.
Milestone’s consists of 20 restaurants, mostly in British Columbia, with combined annual sales of more than $70 million. The restaurants are upscale casual outlets with an emphasis on globally inspired flavors.
Milestone’s is a very successful, rapidly growing restaurant chain, said Gabe Tsampalieros, Cara’s president and CEO. It is a complementary fit with Cara’s existing brand portfolio. Furthermore, by divesting our overall interest in Spectra, this transaction underscores Cara’s stated commitment to continually sharpen its focus and to concentrate on the accelerated development of its core growth brands.
Mr Tsampalieros said that he was extremely pleased Wayne Holm would be a significant investor and the new president, adding that his experience with the brand and the restaurant industry in general would be invaluable to ensuring the continued successful evolution of the Milestone’s brand.