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By acquiring 51% of the 36-store Longo’s chain, Empire is boosting its Ontario presence
ACQUISITIONS
LONGO’S
EMPIRE’S ONTARIO EXPANSION In 2018 it scooped up Farm Boy, and now Empire Company has set its sights on another Ontario chain, acquiring 51% of Longo’s (36 stores) and its e-comm business, Grocery Gateway, in a $357-million deal. In a report, BMO Capital Markets’ analyst Peter Sklar wrote that although small, the acquisition makes sense for Empire as “Sobeys is underweight in Ontario and the GTA [Greater Toronto Area].” He added that with the Farm Boy and Longo’s acquisitions, Empire will have added more than 70 grocery stores in Ontario in less than 2.5 years, “which has served as a quick and effective growth strategy” to expand its presence in the province.
Empire says it will be business as usual and customers will see no difference in their Longo’s and Grocery Gateway experiences. Longo’s will be managed separately and continue to be led by president and CEO Anthony Longo. Grocery Gateway and Empire’s e-comm platform Voilà will also operate separately. “We’ve got two great platforms that mean different things to different people,” Empire president and CEO Michael Medline told Canadian Grocer, noting Longo’s long-standing relationship with Grocery Gateway customers. Over time, Medline said he’s sure “we’ll be able to compare notes and learn from each other and grow our business even more.”
May 2021 || CANADIAN GROCER 11
