On October 29, 1999, John Bitove Jr. continued his family tradition of restaurant business management through a $230 million acquisition of all of the outstanding shares of Scott’s Restaurants Inc. With the acquisition, completed through SR Acquisition Corporation under an OBCA plan of arrangement, Bitove became the world’s second largest KFC franchisee, with 338 restaurants across Canada. In addition, Bitove acquired 54 individual restaurant units in 17 highway travel centres, including Wendy’s, Tim Hortons and Mr Sub franchises. Newcourt Capital, a subsidiary of Newcourt Credit Group, provided a significant portion of the debt and equity financing to Bitove and SR Acquisition. Cameron Rusaw and Andrea Daly of Davies Ward & Beck advised Scott’s Restaurants. Bitove was counseled by Albert Gnat and Hellen Siwanowicz of Lang Michener, with Stephen Fyfe of Borden & Elliot providing tax advice. David Toswell (corporate and securities), Rick McIvor (banking), Robert Fishlock (environment), and Ted Perlmutter (real estate) of Blake, Cassels & Graydon provided advice to Newcourt Capital.
