A&W BUYING KFC
By Adnews Staff
Vancouver-based A&W Food Services of Canada has made a deal to buy KFC Canada from Laidlaw Inc. of Burlington, Ont. This purchase will be made after Laidlaw buys Toronto-based Scott's Hospitality, the current owner of the fried chicken chain. The deal with Laidlaw will also give A&W 50 roadside restaurants on major highways in Ontario, also owned by Scott at the moment. Ogilvy & Mather of Toronto handles advertising for the 405 Kentucky Fried Chicken outlets in Canada. BBDO Canada's Vancouver office does advertising for A&W's 482 restaurants in Canada. Laidlaw has signed agrement to buy Scott's for $835.8 million, with the intention of selling off the the restaurant business. Beside KFC and the roadside eateries, the Scott's restaurant holdings include Manchu Wok restaurants in North America and Perfect Pizza outlets in Britain. A&W will manage the latter two chains until they are sold. With the addition of Scott's 6,000 buses to its own fleet of 35,000, Laidlaw will become the biggest school bus operator in North America. The deal is subject to the approval of Scott's shareholders, the largest of which is Fairwater Capital Corp., with a 47.8% holding.