Colabor Group to acquire Alimplus in C$51.5m deal to expand Quebec food distribution

Colabor Group Inc. has announced a strategic acquisition deal to purchase the food distribution assets of Alimplus Inc., known as Mayrand Plus, along with all outstanding shares of its subsidiary, Tout-Prêt Inc. The transaction, valued at C$51.5 million, is expected to significantly expand Colabor’s reach within the Quebec food distribution market while strengthening its foothold in the province’s growing foodservice sector.

The acquisition agreement includes Alimplus’ three key distribution centers in Drummondville, Anjou, and Quebec City, as well as its well-established customer base spanning restaurants, hotels, and institutional clients. Additionally, Colabor will acquire Tout-Prêt, a company specializing in freshly cut fruits and vegetables, positioning itself for broader foodservice market growth. However, the deal does not include the four retail stores of Groupe Mayrand Alimentation Inc. Instead, Colabor has signed a six-year distribution agreement with these stores, ensuring a long-term supply relationship.

With Alimplus’ assets and the new distribution agreement in place, Colabor anticipates an additional $225 million in annual sales, reinforcing its competitive position in a sector driven by demand for efficient food distribution networks and supply chain optimization.

Why Is This Acquisition Critical for Colabor’s Growth Strategy?

Colabor Group’s Chief Executive Officer, Louis Frenette, emphasized that the acquisition aligns with the company’s broader growth strategy by allowing it to capture new high-value market segments. By integrating Alimplus’ well-established distribution channels, Colabor aims to enhance its service offerings and unlock cross-selling opportunities, particularly through its private label food products and Tout-Prêt’s fresh produce offerings.

This move is particularly strategic given the growing demand for reliable food distribution services across Quebec. Industry trends indicate that restaurants, hotels, and institutional buyers are increasingly seeking streamlined supply solutions, making Colabor’s expanded infrastructure a key competitive advantage.

Alimplus, which has operated for over four decades, has built a strong reputation in the Quebec market, recognized for its efficient service model and experienced workforce. The company’s established presence in key urban centers positions Colabor to strengthen its regional distribution efficiency while expanding market share in the competitive foodservice industry.

How Is Colabor Financing the Alimplus Acquisition?

To support the acquisition, Colabor has secured a combination of credit facility expansions and debt financing agreements, ensuring the deal’s financial sustainability. The financing package includes an amended and expanded senior first-ranking secured credit facility totaling $95 million, which provides the necessary liquidity to integrate the acquired assets. It also includes an extension of its existing $15 million subordinated debt agreement with Investissement Québec, reinforcing its financial stability, along with a new $15 million deeply subordinated debt facility from Investissement Québec, further strengthening its balance sheet.

Colabor’s Senior Vice President and Chief Financial Officer, Pierre Blanchette, expressed confidence that the acquisition would deliver immediate and long-term value to shareholders. He highlighted that continued support from banking partners and Investissement Québec reflects strong market confidence in Colabor’s expansion strategy.

Industry analysts suggest that this financing approach allows Colabor to maintain financial flexibility while leveraging the anticipated synergies from the acquisition, ensuring long-term food distribution efficiency and cost-effective logistics management.

When Will the Acquisition Be Finalized?

The acquisition remains subject to regulatory approvals and customary closing conditions. Colabor expects the transaction to be completed by the second quarter of 2025, pending all necessary approvals. Once finalized, the deal will mark one of the most significant consolidation moves in Quebec’s foodservice industry, enabling Colabor to further enhance its operational scale and regional market leadership.

What Does This Mean for Quebec’s Food Distribution Industry?

Colabor’s acquisition of Alimplus reflects a broader trend in the Quebec food distribution sector, where companies are focusing on expanding distribution networks, improving supply chain efficiency, and capitalizing on growth in the foodservice industry.

Experts predict that this deal will enable Colabor to strengthen its Quebec food distribution network, ensuring improved service coverage. The acquisition also positions the company to expand its private label product reach through an enhanced distribution footprint. By leveraging logistics synergies, Colabor can optimize cost efficiency and improve operational margins while capturing a larger share of the restaurant and institutional food supply market, reinforcing its competitive edge.

Additionally, the strategic six-year distribution agreement with Groupe Mayrand Alimentation Inc. stores ensures that Colabor secures a long-term revenue stream while continuing to expand its influence in Quebec’s evolving foodservice market.

A Transformative Step in Colabor’s Expansion Strategy

Colabor Group’s strategic acquisition deal with Alimplus marks a significant step in the company’s long-term vision of becoming a dominant player in Quebec’s food distribution industry. By integrating a well-established distribution network, securing a major six-year supply agreement, and leveraging financial backing from Investissement Québec and banking partners, Colabor is positioning itself for sustained growth.

As the foodservice industry continues to evolve, Colabor’s enhanced logistics capabilities and expanded market reach will be key drivers in ensuring customer satisfaction, supply chain resilience, and long-term profitability.