Management of Prime Restaurant Group Inc., which owns such chains as Casey's Bar & Grill and Red Devil Barbeque & Grill, has bought out the firm from a private company owned by Charles Bronfman and his family.
Mississauga-based Prime announced yesterday that management had bought a majority interest from the Bronfman's Claridge Inc., which has been a large investor in the restaurateur for about 14 years. Some other non-management investors sold their stakes as well. Terms of the deal were not disclosed.
Prime is a good company and has opportunities to grow, but both it and Montreal-based Claridge have evolved since the initial investment, said Andrew Parsons, Claridge's chief financial officer.
"The industry is not really on our radar screen now, and in order to get it [Prime]to the next level, we believe that management are the best people to do that," he said.
John Rothschild, Prime's president and chief executive officer, said he saw the deal as a great opportunity for management, which already holds a 25-per-cent stake. Claridge executives have been "fantastic advisers," but management has been running the company and the team has enough financial resources to ensure its business plans are met, he said.
Mr. Rothschild and Nick Perpick, Prime's chief operating officer, will be the major shareholders, with other company management owning the rest of the equity. GE Capital Canada Equipment Financing Inc. provided debt financing for the deal.
Prime has about 130 casual-dining restaurants in Canada, and employs about 9,000 people. It has system-wide sales, including those of franchisees, of about $250-million a year.
Prime also runs such chains as Pat & Mario's and East Side Mario's in Canada, and it owns the Esplanade Bier Markt in Toronto. Its Prime Pubs unit includes Fionn MacCool's, D'Arcy McGee's and Slainte.
The company has plans to open more than 70 restaurants over the next three years, including 20 within 18 months, Mr. Rothschild said.
Prime doesn't need to raise money through an initial public offering in order to carry out its business plans, but it's something the company would probably explore in the future, he added.