Canadian foodservice company Cara Operations has completed the sale of its health services business to Compass Group Canada. Compass has paid around $30 million for the business.
As part of the deal, Compass also entered into a food service distribution agreement with Cara’s distribution subsidiary, Summit Food Service Distributors. Summit will supply the Compass health services accounts in Canada, while Compass will continue to license Cara’s brands, such as Harvey’s, Swiss Chalet and Second Cup, in health services accounts.
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 in the popular Milestone’s restaurant concept, Cara is now positioned as a premiere integrated restaurant company, said Gabe Tsampalieros, Cara’s president and CEO.
Mr Tsampalieros added that the developments would allow Cara to dedicate its human and financial resources to accelerating the growth of its core brands.
Cara recently announced its offer to acquire a controlling interest in the Milestone’s restaurant business in a cash and share transaction worth $34.4 million. The deal would involve the exchange of all Cara’s shares in the Spectra Group of Great Restaurants, of which it is currently the largest shareholder.