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Empire closes acquisition of Farm Boy chain

Fresh grocer seen as growth vehicle for Sobeys business

Russell Redman

December 11, 2018

2 Min Read
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Empire Company Ltd., the parent of Sobeys Inc., has finalized its $800 million (Canadian) deal to buy fellow Canadian grocer Farm Boy.

Ottawa-based Farm Boy operates 26 stores in southeastern Ontario. The retailer specializes in local fresh produce and meat, offers a wide range of ready-to-eat food prepared in-store and features a strong private label program.

Empire said Monday that Farm Boy, acquired from Berkshire Partners and the chain’s management shareholders, will be run as a separate company. Farm Boy's co-CEOs and members of its senior management team have reinvested for a 12% interest of the continuing business.

Plans call for Sobeys to finance the transaction, announced in late September, through cash on hand and a new $400 million senior, unsecured, nonrevolving credit facility.

"We are thrilled to officially team up with Farm Boy," Empire President and CEO Michael Medline said in a statement. "They have an incredible brand, great stores and customer service, and a superb leadership team. Founder and co-CEO Jean-Louis Bellemare and co-CEO Jeff York will remain investors in the company and will continue in their roles for the long term, managing the business separately from Empire's broader operations. We look forward to turbo-charging Farm Boy's growth and allowing them to broaden the reach of their winning formula."

Related:Empire to buy Farm Boy chain for $800 million

Stellarton, Nova Scotia-based Empire said Farm Boy will team with the Sobeys and FreshCo banners to grow its presence in Ontario. Farm Boy opened its first stores in greater Toronto earlier this year, and plans to open its 27th store in Oakville, Ontario, on Dec. 13 and its 28th store in Toronto early next year. Empire plans to spur the rollout of the Farm Boy concept in greater Toronto and southwestern Ontario via new construction and conversions of some current Sobeys locations.

Medline has said Farm Boy provides a strong growth vehicle for urban and suburban markets. Over the long term, Empire aims to expand the format to other parts of Canada.

Farm Boy’s private label products also are slated to be added to Sobeys' Ocado-based e-commerce business, expected to launch in the Toronto market in 2020.

Overall, the Sobeys retail network includes more than 1,500 stores in all 10 provinces under such banners as Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods and Lawtons Drugs.

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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