Groupe Colabor Inc. announces the acquisition of certain Alimplus assets for $51.5 million

Source: Colabor

Saint-Bruno-de-Montarville (Quebec), February 19, 2025 – Groupe Colabor Inc. (TSX: GCL) has signed an agreement to acquire the food distribution assets of Alimplus Inc., operating under the Mayrand Plus brand, as well as all issued and outstanding shares of Tout-Prêt Inc., a subsidiary specializing in the distribution and preparation of pre-cut fruits and vegetables in Quebec.

The acquisition is valued at $51.5 million, subject to adjustments. The transaction does not includethe four retail stores of Groupe Mayrand Alimentation Inc., but Colabor will establish a six-year distribution agreement with them.

This acquisition strengthens Colabor’s position as a leading food distributor in Quebec, allowing for new synergies and cross-selling opportunities.

A Strategic Growth Move for Colabor

“The acquisition of Alimplus significantly accelerates our growth strategy and positions us as a key player in the food distribution industry. This transaction allows us to expand our customer base and create synergies, particularly with our private label and Tout-Prêt products,” said Louis Frenette, President and CEO of Colabor.

Pierre Lapointe, President and CEO of Alimplus, emphasized the strong alignmentbetween the two companies:

“Colabor shares our values and company culture. We believe this partnership will be highly beneficial for both our employees and our customers.”

Financing and Regulatory Approvals

To finance the acquisition, Colabor has secured multiple financial agreements, including:

•An increase in its senior secured credit facility to $95 million

•An extension of its existing $15 million subordinated debt with Investissement Québec (IQ)

•A new $15 million deeply subordinated debt facility with IQ

The transaction is subject to regulatory approvals and is expected to close in the second quarter of 2025.

“This acquisition is immediately accretive for Colabor’s shareholders and allows us to accelerate our strategic plan while maintaining sound financial management,” added Pierre Blanchette, Executive Vice President and Chief Financial Officer of Colabor.

Desjardins Capital Markets and Fasken Martineau DuMoulinadvised Alimplus, while McCarthy Tétraultacted as legal counsel for Colabor.