Loblaw to acquire T&T Supermarket, Canada's largest Asian food retailer
T&T to operate as separate division of Loblaw
BRAMPTON, ON, July 24 /CNW/ - Loblaw Companies Limited ("Loblaw") (TSX: L - News) today announced that the shareholders of T&T Supermarket Inc. ("T&T") have entered into an agreement with Loblaws Inc., a subsidiary of Loblaw, for the purchase of all the common shares of T&T Supermarket, Canada's largest Asian food retailer. The purchase price will be $225 million, with certain adjustments to be made at closing. $191 million of the purchase price will be funded by cash and the remaining through preferred shares issued by T&T, the value of which will be tied to the future performance of the business.
"We are delighted with this acquisition", said Galen G. Weston, Executive Chairman of Loblaw Companies Limited. "T&T's talented management team and colleagues have developed what we believe are the best Asian stores in Canada, which will be used to help Loblaw extend its ethnic offering to better serve Canada's largest growing customer segment."
T&T Supermarket began operations in 1993 and now operates 17 stores in the provinces of British Columbia, Alberta and Ontario and four distribution centres, three in Vancouver and the other in Toronto. T&T Supermarket offers a robust Asian food offering with emphasis on fresh and ready to consume meals.
"Some of our customers have a nickname for us - The Asian Loblaw. Today we are proud it has become a reality", said Cindy Lee, CEO of T&T Supermarket Inc. "This acquisition recognizes all of our employees' hard work over the years and the great business we have built. Together with Loblaw, we will continue to celebrate our authenticity while maintaining and enhancing our customers' shopping experience. With the strong backing of Loblaw and the commitment of our employees, we look forward to continued growth and effectively serving Asian food to even more families across Canada."
Closing of the transaction is expected prior to year end and is subject to consents and regulatory approval. It is expected that the acquisition will be accretive to Loblaw earnings in the first year following closing. Sales of the T&T business in the 12 months ending June 30, 2009 were approximately $514 million. TD Securities Inc. acted as financial advisor to T&T on the transaction.
About Loblaw Companies Limited
Loblaw Companies Limited ("Loblaw"), a subsidiary of George Weston Limited, is Canada's largest food distributor and a leading provider of drugstore, general merchandise and financial products and services. Loblaw is one of the largest private sector employers in Canada. With more than 1,000 corporate and franchised stores from coast to coast, Loblaw and its franchisees employ over 139,000 full-time and part-time employees. Loblaw banners include: Loblaws, Loblaw Great Food, Zehrs, Zehrs Great Food, Fortinos, Real Canadian Superstore, Loblaw Superstore, valu-mart, Your Independent Grocer, Atlantic Superstore, Maxi, Maxi & Cie, no frills, Provigo, Extra Foods and more. Through its portfolio of store formats, Loblaw is committed to providing Canadians with a wide, growing and successful range of products and services to meet the everyday household demands of Canadian consumers. Loblaw is known for the quality, innovation and value of its food offering. It offers Canada's strongest control (private) label program, including the unique President's Choice(R), no name(R) and Joe Fresh Style(R)brands. In addition, the Company makes available to consumers President's Choice Financial(R) services and offers the PC(R) points loyalty program.
About T&T Supermarket
T&T Supermarket Inc. ("T&T"), headquartered in Richmond, British Columbia, is Canada's largest Asian food retailer with 17 stores throughout the country. T&T strives to provide Asian families with their favourite and familiar foods, while introducing the wide variety of Asian cuisine to Canada's multicultural society. T&T's core value is freshness, delivered through signature departments such as its in-house bakery, live seafood department, Asian gourmet deli, and an immense selection of fresh produce and grocery items from around the world.
This news release includes forward-looking statements about the possible purchase of T&T Supermarket's business and the expected performance of that business. The forward-looking statements in this news release are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. No assurance can be given that the purchase will be completed. Some of the factors that could affect the closing of the transaction include the need to obtain regulatory approval and satisfy other conditions. Performance of the T&T business is subject to a number of risks and uncertainties, including those related to Loblaw's business generally, which are set out in Loblaw's materials filed with the securities regulatory authorities in Canada from time to time including the Company's 2008 Annual Report and quarterly interim reports including in the sections entitled "Forward Looking Statements". Loblaw disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
- Press Release
- Source: Loblaw Companies Limited
- On Friday July 24, 2009, 7:47 am EDT
T&T to operate as separate division of Loblaw
BRAMPTON, ON, July 24 /CNW/ - Loblaw Companies Limited ("Loblaw") (TSX: L - News) today announced that the shareholders of T&T Supermarket Inc. ("T&T") have entered into an agreement with Loblaws Inc., a subsidiary of Loblaw, for the purchase of all the common shares of T&T Supermarket, Canada's largest Asian food retailer. The purchase price will be $225 million, with certain adjustments to be made at closing. $191 million of the purchase price will be funded by cash and the remaining through preferred shares issued by T&T, the value of which will be tied to the future performance of the business.
"We are delighted with this acquisition", said Galen G. Weston, Executive Chairman of Loblaw Companies Limited. "T&T's talented management team and colleagues have developed what we believe are the best Asian stores in Canada, which will be used to help Loblaw extend its ethnic offering to better serve Canada's largest growing customer segment."
T&T Supermarket began operations in 1993 and now operates 17 stores in the provinces of British Columbia, Alberta and Ontario and four distribution centres, three in Vancouver and the other in Toronto. T&T Supermarket offers a robust Asian food offering with emphasis on fresh and ready to consume meals.
"Some of our customers have a nickname for us - The Asian Loblaw. Today we are proud it has become a reality", said Cindy Lee, CEO of T&T Supermarket Inc. "This acquisition recognizes all of our employees' hard work over the years and the great business we have built. Together with Loblaw, we will continue to celebrate our authenticity while maintaining and enhancing our customers' shopping experience. With the strong backing of Loblaw and the commitment of our employees, we look forward to continued growth and effectively serving Asian food to even more families across Canada."
Closing of the transaction is expected prior to year end and is subject to consents and regulatory approval. It is expected that the acquisition will be accretive to Loblaw earnings in the first year following closing. Sales of the T&T business in the 12 months ending June 30, 2009 were approximately $514 million. TD Securities Inc. acted as financial advisor to T&T on the transaction.
About Loblaw Companies Limited
Loblaw Companies Limited ("Loblaw"), a subsidiary of George Weston Limited, is Canada's largest food distributor and a leading provider of drugstore, general merchandise and financial products and services. Loblaw is one of the largest private sector employers in Canada. With more than 1,000 corporate and franchised stores from coast to coast, Loblaw and its franchisees employ over 139,000 full-time and part-time employees. Loblaw banners include: Loblaws, Loblaw Great Food, Zehrs, Zehrs Great Food, Fortinos, Real Canadian Superstore, Loblaw Superstore, valu-mart, Your Independent Grocer, Atlantic Superstore, Maxi, Maxi & Cie, no frills, Provigo, Extra Foods and more. Through its portfolio of store formats, Loblaw is committed to providing Canadians with a wide, growing and successful range of products and services to meet the everyday household demands of Canadian consumers. Loblaw is known for the quality, innovation and value of its food offering. It offers Canada's strongest control (private) label program, including the unique President's Choice(R), no name(R) and Joe Fresh Style(R)brands. In addition, the Company makes available to consumers President's Choice Financial(R) services and offers the PC(R) points loyalty program.
About T&T Supermarket
T&T Supermarket Inc. ("T&T"), headquartered in Richmond, British Columbia, is Canada's largest Asian food retailer with 17 stores throughout the country. T&T strives to provide Asian families with their favourite and familiar foods, while introducing the wide variety of Asian cuisine to Canada's multicultural society. T&T's core value is freshness, delivered through signature departments such as its in-house bakery, live seafood department, Asian gourmet deli, and an immense selection of fresh produce and grocery items from around the world.
This news release includes forward-looking statements about the possible purchase of T&T Supermarket's business and the expected performance of that business. The forward-looking statements in this news release are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. No assurance can be given that the purchase will be completed. Some of the factors that could affect the closing of the transaction include the need to obtain regulatory approval and satisfy other conditions. Performance of the T&T business is subject to a number of risks and uncertainties, including those related to Loblaw's business generally, which are set out in Loblaw's materials filed with the securities regulatory authorities in Canada from time to time including the Company's 2008 Annual Report and quarterly interim reports including in the sections entitled "Forward Looking Statements". Loblaw disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
