STELLARTON, NS
Sobeys has entered into binding purchase and sale agreements to sell 30 of its Western Canada stores for $430 million Canadian (approximately $390 million U.S.).
As part of its Consent Agreement with the Competition Bureau in relation to the company’s purchase of Canada Safeway, Sobeys will sell 22 of the 23 stores it was required to divest to the Overwaitea Food Group and Federated Co-operatives Limited, according to a press release.
Overwaitea will purchase 15 store locations, which include 10 Safeway stores, 2 Sobeys, and 3 Thrifty Foods throughout British Columbia and Alberta. Co-op will purchase 14 stores, which include 8 Safeway stores, 5 Sobeys, and 1 IGA throughout Manitoba, Saskatchewan, and Alberta.
Sobeys will also sell its Winnipeg Price Chopper store to another undisclosed retailer.
Proceeds from the sale will be used to repay bank debt. The total annual sales from these stores are approximately $690 million and they generate EBITDA of approximately $59 million.
Sobeys expects the deals to close in March or early April. The sale of the Price Chopper location however remains subject to finalization of an asset purchase agreement with the buyer and approval from the Competition Bureau.
Sobeys
