Empire Company Ltd., the parent company of the Sobeys brand, has purchased a 51 per cent share of Longo's.
The acquisition price was $357 million, based on an enterprise value of $700 million, and gives Empire the option to own 100 per cent of Longo’s over time.
The move was announced Tuesday.
Empire brands include Sobeys, FreshCo, Farm Boy and Foodland.
Also part of the sale is the grocery delivery service Grocery Gateway.
There are 36 Longo's locations in Ontario, including one on Clair Road in Guelph.
In a news release, Empire said Longo's would continue to operate under the Longo's name and be run by president and CEO, Anthony Longo.
“Longo’s has built one of the most successful and sought-after brands in the GTA and Southwestern Ontario. Longo’s is a crown jewel of grocery and as a values-driven company, Longo’s culture aligns closely with Empire. We couldn’t be happier to be partnering with Anthony and the Longo’s team,” said Empire president and CEO Michael Medline.
