TORONTO — Loblaw Cos. here said Friday it has entered an agreement with T&T Supermarket — Canada's largest Asian food retailer — to acquire all common shares of the 17-store chain for $225 million ($207.5 million U.S.).
The price will include $191 million, or 85%, in cash and 15% in preferred shares issued by T&T, whose value will be tied to the future performance of the business, the companies said.
T&T, based in Richmond, British Columbia, operates stores in British Columbia, Alberta and Ontario, with sales of approximately $514 million ($473.9 million U.S.) for the year that ended June 30. The company also operates four distribution centers (three in Vancouver and one here).
“Some customers have a nickname for us — the Asian Loblaw,” said Cindy Lee, chief executive officer of T&T. “Today we are proud it has become a reality. Together with Loblaw we will continue to celebrate our authenticity while maintaining and enhancing our customers’ shopping experience.” The transaction is expected to close before the end of the year.
Read More of Today's Headlines
