A well-known Canadian food retailer selling flash-frozen meals, entrees, side dishes and desserts direct to consumers is headed to expansion-minded new owners.
Calgary-based Parkland Corp., which operates fuel and convenience retail chains and bulk fuel distribution businesses in Canada and elsewhere, announced Tuesday it’s signed an agreement to buy M+M Food Market for about $322 million.
The deal, subject to regulatory and other approvals, is expected to close sometime in the first quarter of 2022, the companies said.
M+M opened its first store in Kitchener, Ont. in 1980 under the name M+M Meat Shops and rebranded in 2016 after its 2014 takeover by investment firm Searchlight Capital Partners.
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The chain now includes 315 M+M stores in all 10 provinces and two of the three territories. It also supplies its frozen food products to over 2,000 “M+M Express” locations at retailers such as Rexall, Home Hardware and Circle K, and at Parkland-owned convenience store and fuel station chains such as On The Run, FasGas, Ultramar and Pioneer.
Under the Parkland deal, M+M’s brand, leadership, franchise system, store network and head office in Mississauga will “remain in place,” the company said in its release.
Parkland, which already operates chains in the U.S. and Caribbean as well as Canada, totalling about 3,000 outlets, said Tuesday it “will bring scale and complementary leadership strength that will see M+M Food Market continue to grow in Canada while expanding into new international markets.”
Parkland said it aims to grow M+M’s Canadian annual run rate adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to about $55 million in three years.
“After a comprehensive examination of our experience, our products, profitability, dedicated franchise partners impressive store network, and our business strategy, Parkland concluded that M+M will be an essential part of achieving their long-term goals in the food industry,” M+M CEO Andy O’Brien said in that company’s release.
“This acquisition provides a platform to grow our food offer, expand our proprietary brands, and advance our digital and loyalty strategy,” Parkland senior vice-president Ian White said, noting plans to combine the two companies’ rewards programs and also “bringing On The Run and M+M together to help customers make the most of every stop.”
M+M, Parkland said, “will be integral to our growing On the Run network, bolstering our in-store, e-commerce and home delivery offers, and supporting our standalone convenience concept.” — Glacier FarmMedia Network
