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Metro wraps up acquisition of Jean Coutu Group

Canadian retailer now fields more than 1,300 food and drug locations

Russell Redman

May 11, 2018

2 Min Read
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After gaining regulatory clearance last month, Metro Inc. has closed its $4.5 billion (Canadian) acquisition of Quebec drug chain Jean Coutu Group.

Montreal-based Metro said Friday that the addition of Jean Coutu Group, now a wholly owned subsidiary, makes it one of Canada’s largest food and drug retailers and distributors.

With annual sales of about $16 billion, the merged company operates or franchises more than 1,300 stores in Quebec and eastern Canada, including 600 supermarkets under such banners as Metro, Metro Plus, Super C and Food Basics and nearly 700 drug stores under the Jean Coutu, Brunet, Metro Pharmacy and Drug Basics banners.

"We are very proud to have acquired Quebec's top player in the pharmacy sector,” Metro president and chief executive officer Eric La Flèche said in a statement. “The combined entity will develop the full potential of our two banners, Jean Coutu and Brunet, in order to strengthen our market presence and better meet consumers' needs. Together, we want to create a new retail leader offering consumers a food and pharmacy experience customized to their needs for years to come.”

Varennes, Quebec-based Jean Coutu Group will operate as a stand-alone division of Metro and continue to be led by its current president and CEO François Coutu. He and Jean Coutu Group director Michel Coutu on Friday were named to Metro’s board.

Related:Metro gets green light to close Jean Coutu acquisition

"We showcase popular major brands, known for their commitment to consumer health and well-being,” said François Coutu. “Our operational efficiency will enable us to implement systems and processes while ensuring that consumers receive high-quality, personalized service from our owner pharmacists."

Jean Coutu Group shareholders will hold an approximately 11% equity interest in Metro, and the Coutu family and its affiliated entities will have an 8% stake in the company. 

In approving the transaction, Canada’s Competition Bureau required Metro to divest 10 pharmacies in Quebec, including nine Brunet locations and one PJC Santé Beauté (Jean Coutu Group) store. Metro and Jean Coutu Group announced the merger deal in October.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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