Canada’s second-largest retail grocer and distributor, Sobeys Inc, has announced the completion of the sale of all of the assets of its SERCA Foodservice operations.
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SERCA has been acquired by SYSCO Corporation, the US’s largest foodservice marketer and distributor. SERCA’s Pacific Division operations have been acquired by Gordon Food Service, which will operate in British Columbia as Neptune Food Service.
The net after-tax proceeds to Sobeys from the transactions will be about C$360m (US$225.27m) which will be applied primarily toward debt reduction.
The sale of SERCA Foodservice strengthens the financial condition of Sobeys, including a substantial improvement in debt and interest coverage ratios and growth in the company’s reported EBITDA margin.
“The sale supports our determination to focus our undivided attention on growing our core retail food business across Canada,” said Bill McEwan, president and CEO of Sobeys: “In addition, we have entered into a strategic alliance with the continent’s largest and best foodservice operator, and we look forward to working with SYSCO to explore opportunities together.”
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By GlobalData“SERCA Foodservice is a tremendous addition to our organisation and will assist in our effort to expand our presence in Canada,” said Charles H. Cotros, SYSCO’s chairman and CEO: “We welcome the SERCA team and look forward to the opportunities they will provide us in Canada.”
