BOUCHERVILLE, Quebec, May 07, 2019 (GLOBE NEWSWIRE) -- 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.
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.
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.
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