Empire Company Limited Reaches Deal to Acquire Majority Stake in Longo's and Grocery Gateway
STELLARTON, NOVA SCOTIA - The Canadian grocery sector is heating up, as Empire Company Limited (Empire) recently announced that it acquired a majority stake (51 percent) of Longo’s, as well as Grocery Gateway’s e-commerce business. Altogether, the acquisition price was $357 million (US $286 million).
“Empire has strong momentum and we are laser-focused on our Project Horizon growth plans in key markets like the GTA, both in brick and mortar and e-commerce,” said Michael Medline, President and CEO of Empire. “Longo’s has built one of the most successful and sought-after brands in the GTA and Southwestern Ontario. Longo’s is a crown jewel of grocery, and as a values-driven company, Longo’s culture aligns closely with Empire. We couldn’t be happier to be partnering with Anthony and the Longo’s team.”
Thirty-six Longo’s locations will be added to Empire’s portfolio, along with 70,000 of Grocery Gateway’s existing customers.
Both operations will be led by President and CEO of Longo’s, Anthony Longo.
“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 in a recent press statement. “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. And of course, we will continue to offer the same high-quality service and fresh products, exceptional private-label offering, and the convenience of e-commerce that our guests have come to know and love.”
Although managed separately, the release explained that Longo’s will benefit from Empire’s infrastructure and capabilities, in areas such as sourcing, logistics, and real estate. Grocery Gateway will continue as a stand-alone business.
Empire is strategically positioned to grow both the Longo’s and Grocery Gateway businesses, as it has seen success in its Farm Boy acquisition as well as in its recent e-commerce expansions.
To read more details regarding the deal, click here.
