VAUGHAN, ON, Nov. 2, 2015 /CNW/ - Cara Operations Limited (TSX:CAO) ("Cara") announced on August 31, 2015 it entered into a purchase agreement to acquire a 100% interest in New York Fries from 122164 Canada Ltd, with an anticipated close date for the transaction of Fall 2015.
Today, Cara is pleased to announce the transaction successfully closed October 31, 2015. New York Fries now joins Cara's network of 10 other well-known, wholly-owned Canadian restaurant brands.
About New York Fries
With 124 locations in Canada and another 37 abroad, New York Fries is one of Canada's most successful quick-service restaurant concepts. New York Fries was founded in 1984 by Jay Gould and his brother Hal, who recognized that an opportunity existed in the market for premium fresh cut fries. Since its inception, New York Fries has differentiated itself by using fresh, high quality ingredients cooked to order and as a result, has established a leadership position in the Canadian french fry and poutine market. Jay Gould commented, "New York Fries will be in great hands with Cara and I'd like to take this opportunity to thank everyone who helped build the business to where it is today. I would also like to acknowledge our landlord partners who worked with us to complete this transaction in a timely manner".
Following the success of New York Fries, Jay Gould launched South St. Burger, a premium burger concept, in 2005. South St. Burger is not part of the Cara transaction.
Cara Acquisition and New York Fries Integration
New York Fries is a desirable acquisition for Cara as it seeks to grow its scale and expertise, further establishing itself as a leading restaurant company in Canada. The addition of New York Fries also helps diversify Cara's portfolio of stores into shopping centers where Cara's existing 10 brands currently have limited presence. Cara acquired New York Fries for cash consideration and the transaction has been funded through Cara's existing credit facility. The acquisition is accretive for Cara shareholders.
"Associates from New York Fries head office are relocating to our Vaughan office this week and we are looking forward to them joining us" commented Cara's Chief Executive Officer, Bill Gregson. "New York Fries is a great brand and we are committed to its future - we hope Jay and Hal will be pleased with how the brand evolves while under Cara's ownership and we are excited Warren Price continues to be a part of the New York Fries business going forward".
Warren Price, New York Fries' long-time Executive Vice-President, has joined Cara and continues to lead the New York Fries brand. Warren Price commented, "Our team has been given a warm welcome by Cara's associates and we are excited to start this next chapter. Our commitment to the brand remains unchanged and we look forward to exploring new possibilities for the benefit of both the New York Fries business and our franchise partners".
Certain statements in this Press Release may constitute "forward-looking" statements within the meaning of applicable Canadian securities legislation which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Cara or the industry in which they operate, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this Press Release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this Press Release. These forward-looking statements involve a number of risks and uncertainties, including those related to: (a) Cara's ability to maintain profitability and manage its growth including SRS Growth, System Sales Growth, increases in net income, Operating EBITDA and Operating EBITDA Margin on System Sales (b) competition in the industry in which Cara operates; (c) the general state of the economy; (d) integration of acquisitions by Cara; (e) risk of future legal proceedings against Cara. These risk factors and others are discussed in detail under the heading "Risk Factors" in Cara's long form prospectus dated March 31, 2015. New risk factors may arise from time to time and it is not possible for management of Cara to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of Cara to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Although the forward-looking statements contained in this Press Release are based upon what management believes to be reasonable assumptions, Cara cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this Press Release.
Founded in 1883, Cara is Canada's oldest and largest full-service restaurant company. Cara is a publicly traded company and it franchises and/or operates restaurant brands including Harvey's, Swiss Chalet, Kelsey's, East Side Mario's, Montana's, Milestones, Prime Pubs, Casey's, Bier Markt, and Landing restaurants. As at September 27, 2015, Cara had 828 restaurants across Canada, 88% of which are operated by franchisees. Cara's restaurants are located across Canada with 72% of Cara's locations based in Ontario. More information about Cara is available at www.cara.com.
SOURCE Cara Operations Limited