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.
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