Colabor Group has announced an agreement Wednesday to acquire the food-distribution assets of Alimplus for $51.5 million.

The proposed acquisition includes Alimplus’ distribution properties and activities, along with all issued and outstanding shares of its subsidiary, Tout-Prêt, which specializes in the preparation and distribution of cut fruits and vegetables in Quebec.

“This acquisition of Alimplus’ distribution activities significantly accelerates our growth plan and positions us as a Quebec leader in food distribution,” said Louis Frenette, president and CEO of Colabor.

Frenette called the proposed acquisition “highly strategic.” He said it will allow Colabor to acquire a customer base in coveted territories, create synergies and offer cross-selling opportunities, particularly with its private brand and Tout-Prêt’s products.

“The Colabor family is growing; together, we have everything in hand to become the essential reference for all food artisans in Quebec,” Frenette added.

While the four retail stores of Groupe Mayrand Alimentation are not included in the deal, Colabor will enter into a six-year distribution agreement with them. Alimplus, a Quebec-based company, has been a key player in the food-distribution sector for more than 40 years, serving restaurants, hotels, and institutions. It operates warehouses in Drummondville, Que.; Anjou, Que.; and Quebec City, generating approximately $225 million in annual sales, including the distribution agreement.

“We believe that Colabor is the ideal partner, sharing a common culture and values, to continue our growth,” said Pierre Lapointe, president and CEO of Alimplus. “:We will work together to make this agreement a success for our customers and employees.”

Colabor is financing the acquisition through a combination of amended and increased credit facilities totalling $95 million, an extension of its existing $15-million subordinated debt with Investissement Québec, and a new $15-million deeply subordinated financing agreement with the same provincially owned institution. The financing is conditional on the transaction’s completion.

The proposed acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the second quarter of 2025.

Pictured: Alimplus distribution centre in Quebec.

Photo: Alimplus