Sobeys Inc. Completes the $5.8 Billion Acquisition of Canada Safeway and Crombie REIT Acquires $991.3 Million in Real Estate
Goodmans represented the Special Committee of Crombie REIT in connection with the $991.3 million acquisition of a portfolio of 70 retail properties from Sobeys Inc. who used the sale proceeds to purchase substantially all the assets of Canada Safeway for $5.8 billion.
On November 4, 2013, Empire Company Limited (TSX:EMP .A) (“Empire”) and its wholly-owned subsidiary Sobeys Inc. (“Sobeys”) completed its acquisition of substantially all of the assets of Canada Safeway for $5.8 billion, in accordance with the asset purchase agreement announced June 12, 2013. Empire is a Canadian company with headquarters in Stellarton, Nova Scotia is primarily focused on food retailing and related real estate.
The deal includes the acquisition of 213 stores, 199 in-store pharmacies, 62 gas stations, 10 liquor stores, four distribution centres and 12 manufacturing facilities. The majority of the new properties are in Western Canada, including Vancouver, Calgary, Edmonton and Winnipeg. The purchase was funded through an Empire equity issue completed in July, 2013, proceeds from a Sobeys bond offering completed in August, 2013, proceeds from the disposition of 70 Canada Safeway properties to Crombie Real Estate Investment Trust (“Crombie”) and bank credit facilities.
Crombie closed the $991.3 acquisition of a portfolio of 70 retail properties in accordance with the acquisition as previously announced on July 24, 2013. The acquisition was funded through an equity and convertible debenture issuances, bank financing, the issuance of unsecured bonds and property specific financing.
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