Colabor Group purchasing assets of Quebec-based meat wholesaler, distributor Viandres Decarie to broaden product offering, expand customer base; transaction expected to close in early January
December 22, 2011
– Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Company”) today announced the signature of an agreement to purchase the assets of Viandes Décarie Inc., a leading wholesaler and distributor of meat and meat products. This transaction, Colabor’s second in less than 12 months in the “centre of the plate” meal solutions category, will enable the Company to broaden its product offering and expand its customer base.
Viandes Décarie, established in 1994, had sales of close to $70 million in the 12 months ended April 30, 2011. Operating from its 27,000-square-foot warehouse at Anjou, Quebec, Viandes Décarie is a wholesaler and distributor of a wide range of fresh and frozen meat including beef, veal, lamb, pork and poultry. It has a diversified customer base of foodservice distributors, food retailers and specialty butchers, located mainly in Quebec. Viandes Décarie’s facilities employ Hazard Analysis and Critical Control Points (HACCP) systems to maintain the highest standards of safety and health in food processing. The company also holds a federal permit giving it the opportunity to sell its products across Canada.
“The acquisition of Viandes Décarie is in keeping with Colabor’s strategic objectives of broadening its product range and its customer base,” said Gilles C. Lachance, Colabor President and Chief Executive Officer. “This transaction will further enhance our offering in a growth niche and will allow us to increase our sales to existing customers while penetrating the specialty butcher market. Viandes Décarie enjoys a solid reputation for the quality of its products and services as well as for the efficiency of its operations. We will also benefit from the experience of its senior officers, who will join our team. We anticipate that this acquisition will bring operating synergies and improve earnings per share in 2012."
The acquisition is subject to usual conditions, including all required regulatory approvals, and will be financed from the Company’s available credit facilities. The transaction is expected to close in early January 2012.
Colabor is a wholesaler and distributor of food and non-food products serving the retail market (grocery stores, convenience stores, etc.) and the foodservice market (cafeterias, restaurants, hotels, restaurant chains, etc.), in Quebec, Ontario and the Atlantic provinces.