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Press release from CNW Group


Wednesday, September 01, 2010

COLABOR GROUP ANNOUNCES ACQUISITION OF THE ASSETS OF RTD DISTRIBUTIONS LTÉE09:08 EDT Wednesday, September 01, 2010Transaction consolidates Colabor's presence in eastern QuebecBOUCHERVILLE, QC, Sept. 1 /CNW Telbec/ - Colabor Group Inc. (TSX: GCL) ("Colabor" or the "Company") today announced the signature of an agreement to acquire the assets of RTD Distributions Ltée ("RTD"), one of Colabor's largest affiliated distributors in eastern Quebec. The assets acquired include 100% ownership of Transport Paul-Émile Dubé Ltée. Colabor will also acquire all of the shares held by RTD's parent company in the equity of Colabor Investments Inc., representing 3.85% of the equity of Colabor Investments Inc.RTD, founded in 1949, specializes in the distribution of food and non-food products serving grocery stores, convenience stores, hotels, restaurants and institutional customers in the Lower St. Lawrence and Gaspé regions, in parts of the North Shore and Lower North Shore regions and in northeastern New Brunswick. RTD operates a 120,000-square-foot distribution centre at Rimouski and its fleet of more than 50 trucks supplies more than 10,000 products to approximately 2,500 customers at locations throughout its territory.RTD sales were approximately $112 million in its fiscal year ended January 31, 2010 and the acquisition of this affiliated distributor will bring its operating margins within Colabor. The transaction will be financed from credit facilities available to the Company."The acquisition of RTD will further strengthen our presence in eastern Quebec and will bring appreciable synergies in procurement, operations and transport," said Gilles C. Lachance, Colabor President and Chief Executive Officer. "RTD has a solid reputation and has been providing highly professional services and fast, reliable supply for more than sixty years. As a result of its affiliation with Colabor since 1988, the two organizations share a common vision, which will ensure an harmonious integration of RTD's operations. This acquisition is in keeping with Colabor's strategic objective of consolidating the Canadian market for distribution of food products and services.The acquisition is subject to usual conditions, including all required regulatory approvals, and the transaction is expected to close on or about September 13, 2010.ABOUT COLABORColabor is a wholesaler and distributor of food and non-food products serving the retail market (grocery stores, convenience stores, etc.) and the foodservice market (cafeterias, restaurants, hotels, restaurant chains, etc.), in Quebec, Ontario and the Atlantic provinces.FORWARD-LOOKING STATEMENTSThis release may contain forward-looking statements reflecting Colabor's opinions or current expectations concerning Colabor's and RTD's business operations and future events. These statements are subject to risks, uncertainties and assumptions. Actual results or events may differ.For further information: Colabor Group Inc.: Gilles C. Lachance, President and Chief Executive Officer, Tel. 450-449-0026 ext. 265, Fax 450-449-6180,; Michel Loignon, CA, Vice-President and Chief Financial Officer, Tel. 450-449-0026 ext. 235, Fax 450-449-6180,; MaisonBrison Inc.: Martin Goulet, CFA, Senior Vice-President, Investor Relations, Tel. 514-731-0000 ext. 229, Fax 514-731-4525,