VAUGHAN — Cara Operations Limited has acquired a majority ownership interest in Original Joe’s Franchise Group Inc. for $93 million — $90 million of which was used by the company to re-acquire its trademarks and royalty rights from Diversified Royalty Corp.
“Our existing management team will continue to be located in Calgary and remain in charge of Original Joe’s,” says Derek Doke, president and CEO of Original Joe’s. “We are excited about the opportunities our partnership with Cara will bring for our business, associates and franchise partners.”
Original Joe’s 100 restaurants generate approximately $250 million in annual system sales and approximately $14.7 million in normalized operating EBITDA before synergies. Following the successful acquisition of St-Hubert and Original Joe’s — bringing Cara’s portfolio to 1,227 restaurants — Cara’s total annual system sales are projected to increase from $1.9 billion to $2.7 billion.
“With the majority of Original Joe’s restaurants located in Western Canada, an area where Cara was previously under-represented, this acquisition complements Cara’s existing network of restaurants,” says Cara’s CEO, Bill Gregson. “We will now begin combining our scale and expertise in pursuit of synergies and will rely on Original Joe’s proven management team, headed by Derek, to continue running the business.”