Metro Inc has announced the sale of its foodservice division, Distrago, as it looks to increase its focus on its core food stores.
In an announcement today (22 October), Metro said that it has sold the unit to Sysco Corporation for an unnamed sum. Metro said that the deal would not have a "material impact" on its financial results.
The transaction is expected to close in mid-December and is subject to regulatory approval.
Metro reaches an agreement to sell its Distagro foodservice division to Sysco
MONTREAL, Oct. 22, 2012 /CNW Telbec/ - Metro Inc. (TSX: MRU) announces today that it has reached an agreement to sell its Distagro foodservice division to Sysco Canada, Inc., a subsidiary of Sysco Corporation (NYSE.SYY). Distagro supplies mainly restaurant chains and stores corporately owned and operated by gas station chains.
The transaction involves the Distagro warehouse in Boucherville which employs close to 140 people. Metro will however continue to operate the Saint-Jean-Port-Joli warehouse and serve the Marché Ami, Marché Extra, Service, Servi Express and Dépanneur Gem banners that were supplied by Distagro.
The transaction stems from Metro Inc.'s desire to focus on the growth of its core business, namely food stores and pharmaceutical distribution. Upon closing of the transaction, the 140 employees will become employees of Sysco Canada, Inc.
The transaction is expected to close around mid-December of this year and is subject to the usual conditions, including regulatory approval.
The transaction will not have a material impact on Metro's financial results.
