Cara Operations Ltd. announced Tuesday that it has signed an agreement to buy The Keg steakhouse chain.
According to the terms of the deal, Cara will pay $200 million comprised of $105 million in cash and 3.8 million Cara subordinate voting shares. In addition, Cara may be required to pay up to an additional $30 million of cash based on performance milestones within the first three fiscal years following closing.
Cara intends to change its corporate name to reflect its new business composition.
The addition of 106 The Keg restaurants will provide Cara with a network of 1,365 restaurants.
Cara franchises and/or operates several recognizable Canadian brands, including Swiss Chalet, Harvey’s, St‐Hubert, Milestones, Montana’s, Kelsey’s, East Side Mario’s, New York Fries, Burger’s Priest, Prime Pubs, Original Joe’s, State & Main, Elephant & Castle, Bier Markt, Landing restaurants and Pickle Barrel.
As of November 30, 2017, Cara had 1,259 restaurants, 1,204 of which were located in Canada, with the remaining 55 locations located internationally.