Overwaitea Food Group has signed a purchase agreement with Sobes Inc. to purchase 15 grocery stores in British Columbia and Alberta including the location in Canmore.
Overwaitea Food Group has signed a purchase agreement with Sobes Inc. to purchase 15 grocery stores in British Columbia and Alberta including the location in Canmore.
As part of Sobeys acquisition of Safeway Canada last year, Canada’s Competition Bureau required the company to divest in 23 stores in Western Canada.
The company announced today it reached a $430 million deal with Overwaitea and the Federated Co-operatives Ltd. (Co-op) to sell 30 stores in total.
Sobeys corporate spokesperson Andrew Walker said the company expects the deal to receive approval from the Competition Bureau.
“And we expect it to close some time in March or April, ” he added.
The additional seven stores sold were to Overwaitea in order to create a divestiture package that meets the needs of both companies according to a press release from Sobeys.
“We are thrilled to be able to welcome these stores, along with their existing team members and customers to our Group, ” said Overwaitea president Darrell Jones in a press release. “As a local grocer our philosophy is to tailor our stores and the mix in those stores to suit the needs of our customers and their communities.
“We rely on the folks who work in each of our stores to help us understand and deliver that. By welcoming more than 1,500 of the best grocers in North America to our team, we are in a great position to continue growing our business in these locations. ”
Of the Sobeys locations sold to Overwaitea, only three are in Alberta: Canmore, Cochrane and Fort McMurray. As part of the sale, 14 stores will be transitioned into a Save-On-Foods location and one to a Cooper’s Foods.
“This acquisition adds significantly to Save-On-Foods’ existing presence in both B.C. and Alberta and positions us for further growth in these provinces and beyond, ” Jones said. “We’ve been successful for 100 years because we care about one thing above everything else: doing what’s right for our customers, where they live. We look forward to continuing this commitment in each of these new locations. ”
