Colabor Group Inc. Completes Strategic Acquisition
Colabor Group Inc. (TSX: GCL) has successfully completed the acquisition of crucial food distribution assets from Alimplus Inc., which operates under the name Mayrand Plus. This strategic move involves the purchase of the outstanding shares of Tout-Prêt Inc., a subsidiary of Alimplus, all for a revised total of $49.75 million. This amount reflects a minor adjustment from the previously announced $51.5 million.
Details of the Acquisition
The acquisition encompasses various assets associated with the food distribution sector and signifies a significant expansion for Colabor. Tout-Prêt specializes in the distribution and preparation of cut fruits and vegetables within Quebec. Notably, the acquisition excludes the four stores of Groupe Mayrand Alimentation inc., though Colabor has secured a distribution agreement with them for an initial six-year duration. This collaboration is poised to bolster Colabor's operations in the region.
Impact on Annual Sales
For the twelve-month period ending in December 2024, these operations, along with the new distribution agreement, are anticipated to contribute approximately $225 million in annual sales. This acquisition doesn't just enhance Colabor's portfolio; it is a step toward solidifying its position in the competitive food distribution market.
Financing the Acquisition
Alongside the acquisition, Colabor has entered into various financial agreements aimed at supporting this strategic investment:
- Colabor has amended and restated its senior secured credit facility, extending the maturity date to June 2029 and adjusting the total available amount to $91.75 million, which includes $50 million in revolving credit and a $41.75 million term loan.
- The company has also negotiated with Investissement Québec (IQ) to extend the maturity on its existing $15 million subordinated debt to December 2029.
- Additionally, Colabor secured a new financing agreement with IQ for another $15 million in subordinated debt, with a five-year term.
About Colabor Group Inc.
Colabor serves as a vital distributor and wholesaler of food and related products within the hotel, restaurant, and institutional markets across Quebec and the Atlantic provinces. The company specializes in various products, including fish, seafood, and meat, enhancing its offerings through broadline operations.
Contact Information
If you need further information about this acquisition or other queries, please reach out to:
Pierre Blanchette
Senior Vice President and Chief Financial Officer
Colabor Group Inc.
Tel.: 450-449-4911 ext. 1308
Email: investors@colabor.com
Danielle Ste-Marie
Ste-Marie Strategy and Communications Inc.
Investor Relations
Tel.: 450-449-0026 ext. 1180
Frequently Asked Questions
What recent acquisition has Colabor Group Inc. completed?
Colabor has acquired the food distribution assets from Alimplus Inc. and the shares of Tout-Prêt Inc.
How much did Colabor Group pay for the acquisition?
The total consideration for the acquisition is $49.75 million, after adjustments.
What are Colabor's plans following the acquisition?
The company aims to expand its distribution capabilities in Quebec, enhancing their market presence and generating significant annual sales.
What financing agreements did Colabor enter into for this acquisition?
Colabor amended its credit facility and secured additional financing from Investissement Québec, totaling $30 million in subordinated debt.
How does this acquisition impact Colabor's annual sales?
The acquisition is expected to contribute approximately $225 million in annual sales for the upcoming year.
