Fairfax Financial Holdings (FFH) has made a $1.2 billion takeover bid for fast food restaurant
chain Recipe Unlimited (RECP), which owns East Side Mario’s, Kelseys and Swiss Chalet.
Fairfax has offered to pay $20.73 a share in cash for Recipe Unlimited, representing a 53%
premium to where the restaurant chain’s stock had been trading before the takeover
announcement was made.
Fairfax Financial Holdings has said that it plans to take Recipe Unlimited private should its
takeover offer be successful. Toronto-based Fairfax, which is an $18 billion holding company,
already owns 23% of Recipe Unlimited.
Recipe Unlimited said its board of directors supports the takeover and is recommending that
shareholders vote in favor of the deal. The acquisition requires approval from minority
shareholders.
Fairfax Financial Holdings’ stock is up 9% this year and trading at $680.13 per share. Shares of
Recipe Unlimited gained 46% on news of the takeover, bringing its stock price to $19.66 a share
and its year-to-date gain to 10%.
