With Chico, Pet Valu now operates almost 700
stores across every Canadian province
MARKHAM, ON, Feb. 25, 2022 /CNW/ - Pet Valu Holdings Ltd.
("Pet Valu" or the "Company") (TSX: PET), the leading Canadian
specialty retailer of pet food and pet-related supplies, today
announced its entry into the Québec market with the acquisition
of Les Franchises Chico Inc. ("Chico").
Chico is Québec's largest franchisor of pet specialty stores,
with 66 locations across the province. Founded in 1983 by
Pierre Charbonneau and Michel Joly, Chico has a long heritage of
serving devoted pet lovers in Québec. The brand has been
consistently growing its store count and same store sales, and in
2021, generated system-wide sales of approximately $79 million and revenue of approximately
$7 million.
"Entering Québec marks a key milestone in our mission to be
Canada's preferred pet retailer,"
said Richard Maltsbarger, President
and Chief Executive Officer of Pet Valu. "The acquisition of Chico
is an excellent strategic fit for both companies, as we welcome a
great brand with a terrific group of franchisees and loyal
customers to the Pet Valu family, with the opportunity to benefit
from our scale, infrastructure and franchisee support. We
look forward to supporting Chico's continued growth within the
province and serving Québec's devoted pet lovers."
Similar to Pet Valu, Chico's stores provide engaging retail
experiences, with a focus on expert advice and premium quality
products, all within local, small-format locations averaging 3,000
square feet.
Pet Valu plans to operate Chico as a separate subsidiary led by
a dedicated Montréal-based management team, with founders
Pierre Charbonneau and Michel Joly continuing to be active in the
business. Consistent with its multi-banner strategy in other
provinces, the Company intends to preserve the Chico banner in
Québec.
"I have long envisioned seeing Chico expand across Québec, to
provide a place for discerning pet owners to seek expert advice and
high-quality products from dedicated, neighbourhood-based franchise
owners," said Pierre Charbonneau,
Founder and President of Chico. "Pet Valu is the ideal partner to
support Chico's continued growth across the province, given the
correlation to our values and a strong track record fostering close
relationships with their franchise network across Canada."
The acquisition closed February 25,
2022, was funded with cash on hand, and is expected to be
immediately accretive to Pet Valu's Adjusted Net
Income1.
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1
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Adjusted Net Income is
a Non-IFRS Measure. See the Company's Management's Discussion and
Analysis of financial condition and results of operations for the
third quarter ended October 2, 2021 for a reconciliation from net
income, an IFRS measure.
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About Pet Valu
Pet Valu is Canada's leading retailer of pet food and
pet-related supplies with over 600 corporate-owned or franchised
locations across the country. For more than 40 years, Pet Valu has
earned the trust and loyalty of pet parents by offering
knowledgeable customer service, a premium product offering and
engaging in-store services. Pet Valu's neighbourhood stores offer
more than 7,000 competitively-priced products, including a broad
assortment of premium, super premium, holistic and award-winning
proprietary brands. To learn more, please visit:
www.petvalu.ca.
About Chico
Chico specializes in providing support
services, accessories, food, and toys for all pets, with 66
franchised locations across Québec. Founded in 1983, the company
has strived to offer a healthy environment and a good quality of
life to pets for over 35 years.
Forward-Looking Information
This news release contains "forward-looking information"
within the meaning of applicable securities legislation, which
reflects the Company's current expectations regarding future
events, based on management's opinions, estimates and assumptions
in light of its experience and perception of historical trends,
current trends, current conditions and expected future
developments. Some of the specific forward-looking statements
contained herein include, but are not limited to, the anticipated
benefits of the acquisition of Chico and the anticipated expenses
of such acquisition. Forward-looking information is based on a
number of assumptions, and is subject to a number of risks and
uncertainties, many of which are beyond the Company's control. Such
risks and uncertainties include, but are not limited to, the
factors discussed under "Risk Factors" in the Company's
supplemented PREP prospectus dated June 23,
2021. Actual results could differ materially from those
projected herein. Unless otherwise noted or the context otherwise
indicates, the forward-looking information contained in this news
release is provided as of the date of this news release and Pet
Valu does not undertake any obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required under applicable securities laws.
SOURCE Pet Valu Canada Inc.