A Montreal company that processes and distributes Cargill beef to restaurants and hotels in Quebec and Ontario is set to become an extension of a larger distributor's reach.
Boucherville, Que.-based wholesaler and distributor Colabor announced Thursday it's signed a deal to buy the assets of processor T. Lauzon for about $15 million, to be financed through a private placement and share offering.
T. Lauzon, Colabor said, is an "important distributor" of beef brands produced by Cargill's Canadian arm including Angus Pride and Sterling Silver, supplying the hotel and restaurant sectors from a 68,000-square foot federally-approved plant in Montreal. Colabor said it would operate from that facility on a lease.
"The strategic acquisition of T. Lauzon positions Colabor as a leader in protein products in Quebec and provides a strong platform to increase our presence in Ontario," Colabor CEO Claude Gariepy said.
The deal, he added, is "complementary and synergistic" to Colabor's own fresh and frozen beef, pork and poultry distribution business, Viandes Decarie, and "will improve Colabor's 'centre-of-the-plate' product offering."
Decarie, which is based at Anjou near Montreal and became part of Colabor in late 2011, ships throughout Canada and to the U.S., Mexico, China, Korea, Australia, Dubai and Russia.
Colabor said it expects to seal the deal for T. Lauzon by around March 4.
Colabor buys Quebec meat distributor,
Dec. 23, 2011