Cara Operations to purchase St-Hubert
By Canadian PizzaNews acquisitions Cara Operations restaurant industry sthubert swiss chalet
Vaughan, Ont. – Cara Operations, which operates several restaurant brands including Swiss Chalet, will acquire 100 per cent of leading Quebec full-service restaurant and food manufacturer St-Hubert for $537 million.
St-Hubert restaurants operate in three formats: traditional full-service rotisseries, resto-bars and express locations.
The acquisition of St-Hubert provides Cara with 117 restaurants generating system sales of approximately $403 million; 108 restaurants or 92 per cent of the total restaurant portfolio located in Quebec; and Quebec-based food manufacturing plants and two distribution centres generating sales of $225 million, Cara Operations said in a news release.
Over time and under the guidance of the St-Hubert management team, Cara will look to expand other Cara brands into Quebec.
Cara’s management anticipates efficiencies in the areas of purchasing, cost reduction and additional EBITDA from food retail operations.
Cara, which does not currently have an office in Quebec, will maintain St-Hubert’s existing head office in Laval, Que. St-Hubert is highly successful in Quebec in both the restaurant and retail segments.
“The two companies share similar management philosophies and fundamental values,” said Jean-Pierre Léger, chairman and chief executive officer of St-Hubert, in a news release. “This alliance, which will ensure St-Hubert’s sound development, opens up excellent future prospects for our employees. It also provides them with more career opportunities by creating jobs in Quebec, since it will enable us to carry out major expansions of our food manufacturing programs and sales throughout Canada. Our customers will have access to the broad range of products offered by a national leader.”
“This is a historic day for Cara, coming together with such an iconic and prominent Quebec-based business,” said Bill Gregson, chair of the board and chief executive officer of Cara. The acquisition of St-Hubert is an excellent strategic fit for both companies. This transaction gives St-Hubert the opportunity to drive its restaurant growth through the addition of Cara brands in Quebec and to drive a national retail food program for Cara, based in Quebec, utilizing the existing manufacturing facilities and supplier base . . . . It also provides Cara with a head office in Quebec, manufacturing facilities, and a skilled management team that will grow and manage the Cara Quebec restaurant expansion and national retail food initiative.”
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