Colabor Announces the Closing of the Sale of Its Summit Foods Division in Ontario
11 May 2020 - 10:36PM
Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Company”) today
announces it has closed the sale of most of the assets of its
Summit Foods division (“Summit”) in Ontario to Flanagan Foodservice
Inc.(“Flanagan”) for an aggregate amount of approximately $10
million, subject to post-closing adjustments.
Colabor had announced last March the conclusion
of an agreement to sell the majority of Summit’s assets to
Flanagan, which was expected to close last month. With the
COVID-19 pandemic and the temporary closure of many businesses and
restaurants, the necessity for Flanagan to operate the business
with the Mississauga facility and its related equipment was no
longer required. The sale includes the independent and
franchises restaurants business together with some assets and sales
employees. As for the exclusivity for the distribution of
Colabor’s private label, Menu brand, in Ontario granted to
Flanagan, the parties agreed not to proceed with it.
“We are happy to close this transaction and
while some adjustments to the original agreement were necessary in
the current context of COVID-19, we believe that this transaction
is to the benefit of both organizations. We will collaborate
with Flanagan to ensure a smooth transition for our
customers. Colabor will from now on focus on its activities
in Quebec and the Maritimes, and the strategic opportunities of
that market” said Louis Frenette, President and CEO of Colabor.
Forward-Looking Statements
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.
About Colabor
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 fresh fish and seafood,
meat, as well as food and related products through its Broadline
activities.
Further information:
Groupe Colabor
Inc.Pierre GagnéChief Financial Officer450-449-4911 ext.
1308investors@colabor.com |
|
Investor
RelationsDanielle Ste-MarieSte-Marie Strategy and
Communications Inc.450-449-0026 ext. 1308 |
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