Montreal-based Redberry Resto Brands Inc. has acquired 16 Pizza Hut restaurants in Ontario, half of which are in the Ottawa area.
The deal is Redberry's second major purchase in less than 18 months, following its September 2005 acquisition of 40 Pizza Huts to become the biggest franchisee of the pizza chain in Quebec.
Redberry bought the restaurants for an undisclosed amount from YUM! Brands Inc. of Louisville, Ky., which also owns the KFC, Taco Bell and A&W restaurant chains.
With the acquisition of the Ontario restaurants, Redberry expects its sales to rise to $60 million from approximately $48 million in 2006, and its workforce is increasing by 350 people to 1500 employees.
The company said it will be investing about $4 million in 2007 and 2008 to renovate its new Ontario restaurants.
"We plan to lead in the delivery market, offer a superior restaurant experience and maximize profts while maintaining Pizza Hut's reputation for producing a quality product," said Redberry general manager Christian LeBrun.
Redberry will be acquiring three outlets in Nepean, two in Ottawa, and one in each of Kanata, Gloucester and Orleans. The other eight outlets the company is purchasing from YUM! Brands are located in the Kingston area.
All 350 Ottawa-area Pizza Hut employees will be retained.
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