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.
ABOUT COLABOR
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.).
FORWARD-LOOKING STATEMENTS
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.
SOURCE Colabor