METRO and FGF Brands Enter into a Strategic Partnership for Première Moisson's Commercial Bakery Manufacturing Operations

MONTRÉAL, July 16, 2026 /CNW/ -- METRO Inc. (TSX: MRU) and FGF Brands (FGF), a Canadian company and a North American leader in bakery products, today announced a strategic partnership for the commercial bakery manufacturing operations of Première Moisson Group Inc., a subsidiary of METRO. As part of the transaction, FGF will acquire Première Moisson Group's production facility located in Baie-D'Urfé for a total consideration of $90 million. This transaction reflects METRO's ongoing commitment to focus its investments and resources on its core food and pharmaceutical retail and distribution operations, while simplifying its operating model through the support of a specialized partner.

Upon closing of the transaction, FGF will manufacture and distribute Première Moisson products sold in food stores. This agreement will allow METRO to continue offering Première Moisson products to customers throughout its Québec and Ontario food store network while leveraging FGF's manufacturing expertise, innovation capabilities and operational scale.

Première Moisson Group will remain a subsidiary of METRO and will retain ownership of the Première Moisson brand, its network of 25 retail bakeries across Québec, its artisanal in-store production operations, and its French pastry production facility in Vaudreuil-Dorion, which exclusively supplies its bakery network.

The agreement with FGF provides for the continued production and manufacturing of all Première Moisson products. All impacted employees will be transferred to FGF upon closing of the transaction; METRO and FGF will work with the union representing unionized employees as part of the transition.

"This transaction is consistent with our focus on our core food and pharmaceutical retail and distribution activities, while preserving the strength of the Première Moisson brand. By partnering with a company recognized for its manufacturing expertise, we will continue to offer customers the Première Moisson products they enjoy while benefiting from enhanced innovation, product development capabilities and a more efficient operating structure." said Marc Giroux, Chief Operating Officer, METRO.

"We are pleased to bring our baking expertise to METRO and in particular to Première Moisson, a brand renowned for the quality of its products and craftsmanship. This partnership allows us to leverage our manufacturing and innovation capabilities to support the growth of Première Moisson's grocery offering while continuing to provide consumers with high-quality products," said Ojus Ajmera and Tejus Ajmera, Co-Chief Executive Officers and Co-Founders of FGF.

The transaction is subject to customary closing conditions for transactions of this nature. It is expected to close during METRO Inc.'s fourth quarter of fiscal 2026, which ends on September 26, 2026.

About METRO Inc.

With annual sales of more than $22 billion, METRO Inc. is a food and pharmacy leader in Québec and Ontario, providing employment to more than 97,000 people. Its purpose is to Nourish the health and well–being of our communities. As a retailer, franchisor, distributor, manufacturer, and provider of eCommerce services, the company operates or services a network of some 1,000 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson, and some 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners. For more details, visit corpo.metro.ca and follow the latest news on LinkedIn.

About FGF Brands

FGF Brands is a Canadian, family-owned private bakery company founded in 2004. The FGF Group of Companies is Canada's largest industrial baker and one of the world's fastest-growing producers of bakery and snack foods. Headquartered in Toronto, Ontario, FGF supplies a broad range of branded and private-label products to leading retailers and foodservice partners across the globe. Guided by the belief that everyone deserves great food at an affordable price, FGF has earned a reputation as a values-led enterprise that fuses culinary craftsmanship with advanced industrial technologies.

The FGF Group operates a network of over 30 world-class facilities and owns iconic brands such as Stonefire®, ACE®, Wonder®, Country Harvest®, D'Italiano®, and Gadoua® cementing its position as a cornerstone of North America's modern food industry.

Forward-Looking Information

This news release contains forward-looking information that reflects the expectations of the management of METRO Inc. regarding expected future events, including statements relating to the transaction between Première Moisson Group Inc. and FGF, the timing of its completion, and the future prospects of METRO Inc., its subsidiaries and FGF. Such forward-looking information generally includes verbs in the future or conditional tense as well as words and expressions such as "will", "expected to", "commitment", or other similar terminology. These forward-looking statements are not facts but rather reflect the estimates and expectations of the management of METRO Inc. Although METRO Inc. believes that these forward-looking statements are based on current, reasonable and complete information and assumptions, they are inherently subject to a number of factors that could cause actual results to differ materially from management's expectations as set out in such forward-looking statements, including the risks and uncertainties discussed under the "Risk Management" section of METRO Inc.'s public disclosure documents filed from time to time with the Canadian Securities Administrators.

The forward-looking statements contained in this news release are made only as of the date of this news release, and METRO Inc. does not undertake any obligation to publicly update such forward-looking statements, whether as a result of new information, future events or otherwise. Given these risks, uncertainties and assumptions, the forward-looking events described in these forward-looking statements may or may not occur. METRO Inc. cannot guarantee that the projected results or events will be achieved.

SOURCE METRO INC.

Further information: METRO, Media Relations, [email protected]