Colabor closes sale of its Summit Foods division in Ontario
May 13, Boucherville, Que. – Colabor Group Inc. has closed the sale of most of the assets of its Summit Foods division in Ontario to Flanagan Foodservice Inc. for approximately $10 million.
Colabor had announced last March the conclusion of an agreement to sell the majority of Summit’s assets to Flanagan, which was expected to close last month.
With the COVID-19 pandemic and the temporary closure of many businesses and restaurants, the necessity for Flanagan to operate the business with the Mississauga, Ont., facility and its related equipment was no longer required.
The sale includes the independent and franchises restaurants business together with some assets and sales employees.
“We are happy to close this transaction and while some adjustments to the original agreement were necessary in the current context of COVID-19, we believe that this transaction is to the benefit of both organizations,” said Louis Frenette, president and CEO of Colabor. “We will collaborate with Flanagan to ensure a smooth transition for our customers.
“Colabor will from now on focus on its activities in Quebec and the Maritimes, and the strategic opportunities of that market.”
Colabor is a distributor and wholesaler of food and related products serving the hotel, restaurant and institutional markets in Quebec, Ontario and the Atlantic provinces, as well as grocery stores and convenience stores. Within its two operating segments, Colabor offers specialty food products such as fresh fish and seafood, meat, as well as food and related products through its Broadline activities.