T&T to operate as separate division of Loblaw
BRAMPTON, ON, July 24 /CNW/ - Loblaw Companies Limited ("Loblaw") (TSX:
L) today announced that the shareholders of T&T Supermarket Inc. ("T&T") 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 $225 million, with certain
adjustments to be made at closing. $191 million 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 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 June 30, 2009 were approximately $514
million. TD Securities Inc. acted as financial advisor to T&T on the
transaction.
About Loblaw Companies Limited
Loblaw Companies Limited ("Loblaw"), a subsidiary of George Weston
Limited, is Canada's largest food distributor and a leading provider of
drugstore, general merchandise and financial products and services. Loblaw is
one of the largest private sector employers in Canada. With more than 1,000
corporate and franchised stores from coast to coast, Loblaw and its
franchisees employ over 139,000 full-time and part-time employees. Loblaw
banners include: Loblaws, Loblaw Great Food, Zehrs, Zehrs Great Food,
Fortinos, Real Canadian Superstore, Loblaw Superstore, valu-mart, Your
Independent Grocer, Atlantic Superstore, Maxi, Maxi & Cie, no frills, Provigo,
Extra Foods and more. Through its portfolio of store formats, Loblaw is
committed to providing Canadians with a wide, growing and successful range of
products and services to meet the everyday household demands of Canadian
consumers. Loblaw is known for the quality, innovation and value of its food
offering. It offers Canada's strongest control (private) label program,
including the unique President's Choice(R), no name(R) and Joe Fresh
Style(R)brands. In addition, the Company makes available to consumers
President's Choice Financial(R) services and offers the PC(R) points loyalty
program.
About T&T Supermarket
T&T Supermarket Inc. ("T&T"), headquartered in Richmond, British
Columbia, is Canada's largest Asian food retailer with 17 stores throughout
the country. T&T strives to provide Asian families with their favourite and
familiar foods, while introducing the wide variety of Asian cuisine to
Canada's multicultural society. T&T's core value is freshness, delivered
through signature departments such as its in-house bakery, live seafood
department, Asian gourmet deli, and an immense selection of fresh produce and
grocery items from around the world.
This news release includes forward-looking statements about the possible
purchase of T&T Supermarket's business and the expected performance of that
business. The forward-looking statements in this news release are subject to a
number of risks and uncertainties that could cause actual results or events to
differ materially from current expectations. No assurance can be given that
the purchase will be completed. Some of the factors that could affect the
closing of the transaction include the need to obtain regulatory approval and
satisfy other conditions. Performance of the T&T business is subject to a
number of risks and uncertainties, including those related to Loblaw's
business generally, which are set out in Loblaw's materials filed with the
securities regulatory authorities in Canada from time to time including the
Company's 2008 Annual Report and quarterly interim reports including in the
sections entitled "Forward Looking Statements". Loblaw disclaims any intention
or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
For further information: Loblaw Companies Limited, Inge van den Berg,
Senior Vice President, Corporate Affairs, (905) 459-2500, investor@loblaw.ca
or pr@loblaw.ca; T&T Supermarket, Herman Poon, Public Relations and
Administration Manager, (604) 276-9889, Ext 8611,
hermanpoon@tntsupermarket.com