Acquisition and new contract will generate an estimated $48.0 million annually in additional net sales
BOUCHERVILLE, QC, Sept. 11, 2014 /CNW Telbec/ - Colabor Group Inc. (TSX: GCL) ("Colabor" or the "Corporation") today announced that it has acquired a majority of the assets of Marcotte Alimentation ("Marcotte"), a leading distributor of food and non-food products based in Trois-Rivières, Quebec. The Corporation is also proud to announce the award of a large multi-year contract to supply the Popeyes Louisiana Kitchen restaurant chain in Ontario, as well as the long-term renewal of a supply agreement with Ben Deshaies inc.
The strategic acquisition of Marcotte raises Colabor's profile as a distributor in the Mauricie and Centre du Québec regions while securing the sales volume of the Corporation's Wholesale segment. Founded in 1930 and a Colabor affiliated distributor since 1987, Marcotte supplies to its foodservice and retail customers an extensive range of fresh (including meat), dry, frozen and packaging products. Marcotte has annual sales of approximately $50.0 million and its net contribution to Colabor's sales should be about $25.0 million. Colabor expects the acquisition to have a favourable effect on its net earnings and the transaction will be financed from the Corporation's available credit facilities.
"In accordance with the Corporation's overall strategic plan, this acquisition will add to Colabor's distribution customer base while bringing procurement and operating synergies. Marcotte enjoys a solid reputation in its target markets and we are pleased that its management team, led by Mr. Jean-Guy Ladrière, will remain in place. The pooling of our strengths will also foster optimization of the operating efficiency of our distribution infrastructure," said Claude Gariépy, President and Chief Executive Officer of Colabor.
In another initiative, Colabor has won a large contract to supply the 76 establishments of the Popeyes Louisiana Kitchen restaurant chain in Ontario. This long-term agreement takes effect on December 1, 2014 and is expected to generate annual sales estimated at $23.0 million.
"The winning of this new contract demonstrates our competitiveness and our ability to offer a comprehensive range of value-added products and services at a competitive price. Popeyes has an aggressive expansion plan for Ontario and we are proud to support them in the development of their network," Mr. Gariépy added.
Finally, Colabor announces the long-term renewal of its supply agreement with Ben Deshaies inc., a leading affiliated distributor of its Boucherville Wholesale Division. This renewal, in conjunction with the Marcotte acquisition, brings the proportion of Boucherville's sales volume secured by long-term agreements to almost 70%. Discussions are continuing toward the renewal of supply agreements with its affiliated distributors.
Colabor is a wholesaler and distributor of food and non-food products serving the foodservice market (cafeterias, restaurants, hotels, restaurant chains, etc.) in Quebec, Ontario and the Atlantic provinces, as well as the retail market (grocery stores, convenience stores, etc.).
This news release may contain forward-looking statements reflecting the opinions or current expectations of Colabor Group Inc. concerning its performance and business operations and future events. These statements are subject to risks, uncertainties and assumptions. Actual results or events may differ.
For further information:
Colabor Group Inc.
Jean-François Neault, CPA, CMA, CA
Vice President and Chief Financial Officer
Tel.: 450-449-4911, ext. 308
Fax: (450) 449-6180
Colabor Group Inc.
Senior Advisor, Human Resources and Communications
Tel.: 450-449-4911, ext. 251