Empire Company, the parent that oversees the Sobeys brand, has reached an agreement to purchase a 51 per cent stake in Longo's for $357 million.
In a news release, the company says that the deal instantly adds two high-quality banners to their food retailing business, adding to Empire's growth in Ontario. Longo's, a specialty grocery store with 36 locations in the GTA, is already a well-establish grocery name in the province along with their successful e-commerce operation Grocery Gateway.
"Longo's has built one of the most successful and sought-after brands in the GTA and Southwestern Ontario," said Michael Medline, president and CEO of Empire. "Longo's is a crown jewel of grocery and as a values-driven company, Longo's culture aligns closely with Empire."
The Sobeys parent has been making strides in growth over the past few years, most notably with their acquisition of Ottawa-based grocer Farm Boy, which has grown exponentially since Empire completed the purchase in 2018.
Empire adds another grocery e-commerce business to their belt with Grocery Gateway, which serves 70,000 long-standing customers. Grocery Gateway will remain as its own standalone operation with further investment from Empire and collaborative efforts from their already established e-commerce business Voilá.
The Longo's brand will continue to be led by President and CEO Anthony Longo, but will have access to Empire's resources and infrastructure in the realm of sourcing, logistics and real estate.
"With strong alignment to our family values and purpose, we look forward to working together with Empire to bring the Longo's experience to even more Canadian families," said Longo. "The more we learned about Empire, the clearer it became that this was the right team to partner with to support our next chapter of growth."
The deal will go through customary closing conditions and is expected to close in the first quarter of the company's 2022 financial year.
