Colabor Group Inc. completes the acquisition of T. Lauzon Ltd and $30 million private placement financing
BOUCHERVILLE, QC, March 4, 2013 /CNW Telbec/ - Colabor Group Inc. (TSX:
GCL) ("Colabor" or the "Company") today announced the closing of its previously-announced acquisition
of substantially all of the assets of T. Lauzon Ltd ("T. Lauzon") and certain inventory of a related entity to T. Lauzon for a total
consideration of approximately $13 million (the "Acquisition").
T. Lauzon is an important distributor of Cargill beef brands as Angus Pride, Sterling Silver, producing and processing high quality protein products throughout the
provinces of Québec and Ontario. As a well-known and established
distributor in Québec, it holds a reputation for excellent products and
experienced, skilled employees providing effective and flexible service
to the restaurant and hotel industries from a recently renovated 68,000
square feet federally approved plant located in Montreal. Colabor will
continue to operate from these premises which will be leased.
Concurrently with the closing of the Acquisition, Colabor has completed
the private placement (the "Private Placement") with the Caisse de dépôt et placement du Québec of 1,987,000 common
shares of Colabor (the "Shares") at a price of $7.55 per Share for gross proceeds of $15 million. The
Company has also completed the private placement, on a bought deal
basis underwritten by National Bank Financial Inc. (the "Offering"), of 1,987,000 Shares on the same terms as the Private Placement for gross proceeds of $15
A portion of the net proceeds of the Private Placement and the Offering
was used to finance the Acquisition. The remainder of the net proceeds
will be used to reduce its indebtedness and for general corporate
The Offering was completed on a private placement basis pursuant to
"accredited investor" exemptions under National Instrument 45-106 and
certain other available and agreed upon exemptions. Shares issued under
the Private Placement and the Offering will be subject to a four-month
hold period following closing.
This press release is not an offer to sell or the solicitation of an
offer to buy securities in the United States. The Shares being offered
have not been and will not be registered under the United States
Securities Act of 1933 and, accordingly, will not be offered, sold or
delivered, directly or indirectly, within the United States, absent an
exemption from registration.
Colabor is a wholesaler and distributor of food and non-food products
serving the food-service (cafeterias, restaurants, hotels, restaurant
chains, etc.) and retail (grocery stores, convenience stores, etc.)
Additional information can be found in the information documents filed
by the Colabor Group Inc. with securities regulators, at www.sedar.com.
SOURCE: COLABOR GROUP INC.
Colabor Group Inc.
Mr. Claude Gariépy
President and Chief Executive Officer
(450) 449-4911, extension 265
Colabor Group Inc.
Mr. Michel Loignon, CPA, CA
Vice President and Chief Financial Officer
(450) 449-4911, extension 235