- Recipe Unlimited (RECP) has signed a letter of intent with Hamblin Watsa Investment Counsel
- The investment manager, representing certain affiliates of Fairfax Financial (FFH), will form a wholly-owned subsidiary to acquire Recipe Unlimited at C$20.73 per share
- The transaction is subject to shareholder approval and the negotiation of a definitive agreement
- The parties expect to close the deal in Q4 2022
- Recipe Unlimited is Canada’s largest full-service restaurant company
- Fairfax is a holding company engaged in property and casualty insurance and reinsurance, and the associated investment management
- Recipe Unlimited (RECP) is up by 47.89 per cent trading at $19.98 per share
- Fairfax Financial (FFH) is up by 0.77 per cent trading at $692.02 per share
Recipe Unlimited (RECP) has entered into a letter of intent with Hamblin Watsa Investment Counsel.
The investment manager, representing certain affiliates of Fairfax Financial (FFH), will form a wholly-owned subsidiary to acquire all available Recipe shares and a maximum of 4,000,000 multiple voting shares owned by Cara Holdings.
The C$20.73 per share all-cash offer represents a 53.4-per-cent premium to the closing price on August 8, 2022.
Recipe’s board believes the transaction is in the company’s best interest and recommends that shareholders vote in favour of it at a special meeting to be held in the near future.
Greenhill & Co. Canada has valued Recipe’s subordinate voting shares between $16.67 and $21.85 per share.
The transaction is contingent on the negotiation and execution of a definitive agreement, which the parties expect to finalize in Q4 2022.
Recipe Unlimited is Canada’s largest full-service restaurant company. Its brands include Swiss Chalet, Harvey’s, St-Hubert, The Keg, Montana’s, Kelseys, East Side Mario’s, and The Pickle Barrel, among others.
Fairfax is a holding company engaged in property and casualty insurance and reinsurance and the associated investment management.
Recipe Unlimited (RECP) is up by 47.89 per cent trading at $19.98 per share as of 12:27 pm EST.
Fairfax Financial (FFH) is up by 0.77 per cent trading at $692.02 per share as of 12:23 pm EST.
