Future growth of the Milestones chain of grill-and-bar restaurants across Canada will take place under different ownership.
Vaughan, Ont.-based Recipe Unlimited, owner of fast-casual and dining chains such as Swiss Chalet, The Keg, Harvey’s, St-Hubert and Montana’s, announced Monday it will sell the Milestones chain to Foodtastic, owner of the Second Cup and Nickels Deli brands among others.
“This transaction enables Recipe to further rationalize our portfolio to focus on large brands that generate significant free cash flow and dominate their segment with younger brands that offer attractive opportunities for accelerated new restaurant growth,” Recipe CEO Frank Hennessey said in a release.
“While it is always difficult to depart with valued franchisees and teammates, we feel that Foodtastic is the right parent for Milestones at this stage of its history.”
Sold by Vancouver-based Spectra Group to Recipe (then known as Cara) in 2002, Milestones today has 45 locations — 27 in Ontario, 11 in British Columbia, five in Alberta and one each in Saskatoon and Moncton. The chain’s menu includes various burgers, steaks and pasta dishes and assorted happy-hour fare.
“This acquisition is consistent with our strategy of acquiring quality Canadian brands with growth potential, and we are excited to introduce Milestones to the Quebec market,” Foodtastic CEO Peter Mammas said in the same release.
Montreal-based Foodtastic today has over 370 outlets across 16 brands, mainly in the Quebec market, also including rotisserie chicken chains Au Coq, Fusee and Benny, ice cream chain Chocolato and pizza chains Monza and Bacaro, among others.
The company has made no secret of its plans for aggressive expansion and buying more existing brands. It announced a $50 million equity investment in February for more acquisitions.
Most recently, the company closed its deal in April to buy the Second Cup coffee chain, then announced a deal in May for the Copper Branch chain of vegan restaurants.
Financial terms of the Milestones deal weren’t disclosed Monday, other than that the two companies expect to close the sale within 60 days. — Glacier FarmMedia Network