Colabor Group Announces the Execution of an Agreement for the Sale of Viandes Décarie
May 07 2019 - 4:00PM
Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Company”) today
announces that it has concluded an agreement to sell the assets of
Viandes Décarie, a specialty wholesaler in the meat and meat
products market, to 9395-8098 Québec inc., a company belonging to
the Riendeau group, for an aggregate amount of $20 million, subject
to certain adjustments.
“This sale is aligned with our plan to refocus
our activities on our growing core business in the Broadline
Distribution market, where we have, in our opinion, significant
competitive advantages and important growth opportunities,” said
Lionel Ettedgui, President and CEO of Colabor Group Inc. “We wish
to acknowledge the hard work and dedication of all the employees of
Viandes Décarie, who contributed to make of Viandes Décarie a
leader in its sector in Quebec.”
From the proceeds of the purchase price, $17.750
million will be paid at closing and will be applied to existing
credit facilities and the balance will be received over the next
five years as part of a favorable five-year purchasing agreement
contributing to Colabor’s strategy to grow its Broadline sector.
This transaction of Viandes Décarie is subject to customary
conditions, including the approval of its lenders. This transaction
should be concluded before the end of May 2019.
Founded in 1994 and acquired by Colabor Group
Inc. in 2011, Viandes Décarie operates a distribution centre in
Montreal and employs approximately 50 people.
Forward-Looking Statements
This news release contains certain statements
that may be deemed to be forward-looking statements reflecting the
opinions or current expectations of Colabor Group Inc. concerning
its performance, business operations and future events. Such
statements are subject to risks, uncertainties and assumptions and
the analysis of the debt structure and available alternatives, and
risks mentioned in the Corporation’s annual information form found
under its profile on SEDAR (www.sedar.com), such as the risk of
dilution for existing shareholders. As such, these statements are
not guarantees of future performance, and actual results, realities
or events may differ materially. Except as required by law, the
Corporation assumes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions or other factors change.
About Colabor
Colabor is a distributor and wholesaler of food
and related products serving the hotel, restaurant and
institutional markets or “HRI” in Quebec, Ontario and in the
Atlantic provinces, as well as the retail market (grocery stores
and convenience stores). Within its two operating segments, Colabor
offers specialty food products such as meat, fresh fish and
seafood, as well as food and related products through its Broadline
activities.
Further information:Danielle
Ste-MarieSte-Marie Strategy and Communications Inc.Investor
RelationsTel : 450-449-0026 ext. 1180Fax. :
450-449-6180investors@colabor.com
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