HMSHost to Purchase Cara Airport Restaurant Division

HMSHost Corporation (Host) has announced plans to purchase the Airport Terminal Restaurant Division (“ATR”) of Cara Operations Limited (Cara) for approximately CD$62 million, less assumed liabilities.
Under the terms of the agreement, Host (through its wholly-owned subsidiary, Host International of Canada) will acquire the ATR contracts at nine airports: Calgary, Edmonton, Kamloops, Montreal, Ottawa, Saskatoon, Toronto, Vancouver and Winnipeg. Those locations generate approximately CD$74 million in sales and more than CD$9 million in EBITDA and encompass approximately 90 food, beverage and retail outlets including well-known Canadian brands operating under franchise agreements, such as Second Cup and Tim Horton’s.
“We are very excited about this opportunity to provide a seamless transition for airport clients as Cara exits the airport concession business to concentrate on its core business,” says Elie Maalouf, CEO for Host. “Our focus will be on working closely with Cara to minimize any potential disruptions to the business and airport customers, while providing existing ATR employees with future growth opportunities within Host.”
The transaction will compliment Host’s existing airport operations at Calgary, Edmonton, Halifax, Montreal, Toronto and Vancouver.
“The transaction is a win-win for Cara, Host, and our Cara teammates, as well as for the affected airport authorities and the traveling public,” says Don Robinson, president and CEO of Cara. “Under the arrangement, in many cases the locations will continue to feature our great Cara brands which the traveling public enjoys.”