Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — Merger or Acquisition (March 2021)
14 slides from Empire Co Ltd Class A's merger presentation, Mar 16, 2021
Slide 1: Empire to Acquire Longo's and Grocery Gateway
Empire to Acquire Longo’s and Grocery Gateway March 16, 2021
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING INFORMATION This document contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Company’s financial position and understand management’s expectations regarding the Company’s strategic priorities, objectives an
Slide 3: Participants at Today's Presentation
Participants at Today’s Presentation Michael Medline Michael Vels Anthony Longo President & Chief Chief Financial President & Chief Executive Officer of Officer of Executive Officer of Empire and Sobeys Empire and Sobeys Longo’s 3
Slide 4: Overview of Longo's
Overview of Longo’s ▪ Founded in 1956 by three brothers, Longo’s is a specialty grocery retailer, focused on providing customers with high quality fresh products, and offers a range of locally sourced meats and produce. ▪ Longo’s operates in the Greater Toronto Area (“GTA”), Canada’s largest grocery
Slide 5: Transaction Overview
Transaction Overview ▪ Empire has agreed to purchase 51% of Longo’s, for $357 million. ▪ The acquisition is based on a total enterprise value of $700 million. ▪ Longo’s shareholders can receive up to $125 million of the initial consideration in Empire non-voting Class A shares. Purchase Price ▪ Foll
Slide 6: Key Investment Highlights
Key Investment Highlights 1 Aligned with Project Horizon Strategic Priorities 2 Enhances Empire’s Presence in Urban Markets in Toronto 3 Differentiated Specialty Grocery Retailer 4 Strong Online Grocery Offering in the GTA 5 Unique Private Label Offering 6 Retention of Strong and Successful Family-L
Slide 7: Aligned with Strategic Priorities
Aligned with Strategic Priorities Project Horizon Strategic Focus Areas Growth in Market Share Building on Cost and Margin Discipline Invest further in the store network, improving store productivity, scaling up Remove non-value added costs, contain costs as the top line grows grocery e-commerce, an
Slide 8: Enhances Empire's Presence in Urban Markets in Toronto
Enhances Empire’s Presence in Urban Markets in Toronto Successful Omnichannel Platform Advances Ontario Strategy, Accelerating GTA Presence and Growth Large Store Format ▪ >40,000 sq. ft. located in suburban markets. ▪ 19 stores. Mid Store Format Retail Stores ▪ 11,000 – 40,000 sq. ft. located in su
Slide 9: Differentiated Specialty Grocery Retailer
Differentiated Specialty Grocery Retailer Strong brand loyalty supported by differentiated value proposition with exceptional private label and fresh prepared food offering Wide Selection of High Quality, Fresh Foods Unique Grocery Retail Concept Significant Portion of the Store is Fresh, High Margi
Slide 10: Strong Online Grocery Offering in the GTA
Strong Online Grocery Offering in the GTA ▪ Voilà and Grocery Gateway will initially be operated separately as they both focus on capturing market share in the rapidly increasing Ontario online grocery segment. ▪ Synergies and efficiencies between the two businesses will be identified in the short-t
Slide 11: Unique Private Label Offering
Unique Private Label Offering Comprehensive Tiered Program, Central Kitchen Commissary 1 Product Offering 2 Complementary Brands 3 Enables Innovation Premium private label program spanning Recently repositioned to focus on functional Produces and supplies omnichannel network multiple categories that
Slide 12: Retention of Strong and Successful Family-Led Management Team
Retention of Strong and Successful Family-Led Management Team ▪ Longo’s and Grocery Gateway will be managed separately from the existing Empire business and will continue to be run by the Longo family under Anthony Longo’s leadership as President and Chief Executive Officer. ▪ The separate Longo’s m
Slide 13: Key Investment Highlights
Key Investment Highlights 1 Aligned with Project Horizon Strategic Priorities 2 Enhances Empire’s Presence in Urban Markets in Toronto 3 Differentiated Specialty Grocery Retailer 4 Strong Online Grocery Offering in the GTA 5 Unique Private Label Offering 6 Retention of Strong and Successful Family-L
Slide 14: Thank You
EMPIRE COMPANY LIMITED Sobeys ep Thank You WA a -- GATEWAY long