Fairfax Financial Holdings Ltd. Offers to Buy Recipe Unlimited Corp.


VAUGHAN, Ont. — Fairfax Financial Holdings Ltd. has pitched a take-private deal for Recipe Unlimited Corp. that values the Canadian restaurant owner at roughly $1.2 billion.

Fairfax would pay $20.73 per share in cash for the company, which owns fast-casual and fast-food brands such as East Side Mario’s, Kelseys, Swiss Chalet, Harvey’s and more. Fairfax is already the controlling shareholder of Recipe Unlimited, owning 38.5 per cent of the equity interest as of the end of last year for approximately 61 per cent of the voting rights. The other major shareholder is Cara Holdings Ltd., who would continue to be an investor once it goes private.

Recipe said its board intends to recommend that shareholders vote in favour of the deal, based in part on a valuation provided by Greenhill & Co. that placed the fair value of the shares between $16.67 and $21.85. The deal requires the approval of the majority of minority shareholders.

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