Loblaw Companies Limited has announced in a news statement that the shareholders of T&T Supermarket Inc. 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 C$22m (US$20.3m), with certain adjustments to be made at closing. Some C$191m (US$176.5m) 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 the 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 30 June 2009 were approximately C$514m (US$474.9m). TD Securities Inc. acted as financial advisor to T&T on the transaction.
