The grocery store retailer Empire Co. Ltd. (TSX: EMP.A) is getting bigger.
The parent company that already owns major Canadian grocery store chains such as Sobeys, FreshCo, Foodland, IGA and Price Chopper has announced that it is buying Ontario-based grocery chain Farm Boy for $800 million and adding the brand to its far-reaching portfolio.
Empire Co. said the acquisition includes 26 Farm Boy locations in Ontario and that the deal will help it to expand throughout Canada’s most populous province. In particular, the acquisition of Farm Boy will allow the company to grow in the key markets of Toronto, as well as in southwestern Ontario, with new sites and the conversion of some Sobeys locations to Farm Boy outlets.
Empire Co. Chief Executive Michael Medline said the company is hoping to double the size of the Farm Boy business in coming years. Under the deal, Farm Boy will be set up as a separate company and continue to be led by founder Jean-Louis Bellemare.
Empire Co. said Farm Boy products will be added to Sobeys' Ocado-based e-commerce business, an online grocery platform that is now being developed with plans to launch it in 2020.
