Equicapita, a wholly-owned subsidiary of Equicapita Income Trust and Equicapita Investment, has completed the purchase of Canadian pancake restaurant chain Smitty’s.

The acquisition of Smitty’s Canada marks the seventh purchase for Equicapita and expands its portfolio further.

The restaurant chain continues to operate the business under the same name and Equicapita will offer assistance to run its business by establishing strong relationships with its franchisee network.

“We understand the family nature of this business and the importance of the franchisees.”

Equicapita co-founder Michael Cook said: “The opportunity to acquire a well-known Canadian brand with resilient royalty income from the extensive franchisee network is transformational to the size and scope of Equicapita’s investment portfolio.

“Smitty’s provides Equicapita with further portfolio diversification, both geographically and by industry, and adds considerable stability to the portfolio’s income profile.

“We understand the family nature of this business and the importance of the franchisees to the long-term success of the overall business.”

Smitty’s president Steven Fee and chief financial officer Eric Metzler will continue to manage the business.

Norton Rose Fulbright Canada and Pricewaterhouse Coopers served as advisors for Equicapita whereas ATB M&A Advisory Services served as financial advisor for Smitty’s.

Established in 1960 by Walter Chan, Smitty’s currently operates 85 locations including 80 franchised and five corporate locations across Canada, offering buttermilk pancakes, omelettes, burgers, salads, waffles, sandwiches, pastas and steaks.