Owner of Sobeys, FreshCo, Foodland, IGA, Price Chopper buying Ontario grocery chain Farm Boy for $800M
Plan is to convert some of the conglomerate's other brand locations into Farm Boys
The parent company of grocery chain Sobeys Inc. says it has reached a deal to acquire food retailer Farm Boy in a bid to expand its reach in Ontario.
Empire Co. Ltd. says the acquisition, which values the Ontario-based chain of grocery stores at $800 million, includes 26 Farm Boy locations in the province.
Empire said the deal will allow the company to speed up its growth in markets like Toronto and southwestern Ontario, with new sites and the conversion of some existing Sobeys locations.
Empire chief executive Michael Medline said the company is hoping to double the size of the Farm Boy business.
Under the deal, Farm Boy will be set up as a separate company and continue to be led by founder and co-CEO Jean-Louis Bellemare and Jeff York, co-CEO since 2009. Farm Boy's co-CEOs have also agreed to reinvest in the company return for a 12 per cent interest of the continuing Farm Boy business.
Empire said Farm Boy products will also be added to Sobeys' Ocado-based e-commerce business, an online grocery platform to launch in 2020 in the Greater Toronto Area.