MISSISSAUGA, ON, Jan. 18, 2022 /CNW/ - M&M Food Market ("M&M") today announced that it has entered into a definitive agreement to be acquired by Parkland Corporation ("Parkland"), a leading international operator and consolidator of convenience retail and fuel marketing businesses. The deal comes after M&M's successful efforts to rebrand, the transformation of its stores and food portfolio and as M&M pursues its strategy for additional Canadian growth and international expansion.
Parkland's focus on creating convenience destinations and growing their food offerings is expected to elevate the strength of the iconic M&M Food Market Brand. Through the transaction, Parkland will also benefit from a national network of more than 300 M&M stores, over 2,000 M&M Express locations, nearly 500 specialty frozen products and M&M's deep investments in technology. Parkland will bring scale, and complementary leadership strength that will see M&M Food Market continue to grow in Canada while expanding into new international markets.
"Today marks the start of a bold new chapter for our company and stands as a testament to the vision and tireless work of our dedicated team," said Andy O'Brien, CEO, M&M Food Market. "After a comprehensive examination of our experience, our products, profitability, dedicated franchise partners impressive store network, and our business strategy, Parkland concluded that M&M will be an essential part of achieving their long-term goals in the food industry."
Underpinned by their food-first culture, the M&M team will play a leadership role in advancing Parkland's food strategy. The M&M brand, leadership, franchise system, store network, and office in Mississauga, Ontario will remain in place.
"This acquisition provides a platform to meaningfully grow our food offer across all of our markets," said Ian White, SVP Strategic Marketing & Innovation. "M&M's innovative approach to food preparation, national store network and menu development allows us to offer new, restaurant quality food options that complement our existing quick serve restaurants. We plan to grow this capability in all our operating regions and bolster our connection to customers by combining M&M and JOURNIE™ rewards programs to form a premier loyalty program."
A legacy of growth and innovation
Initially known as M&M Meat Shops, the company's first store opened in Kitchener, Ontario in 1980. Throughout the 1990s and 2000s, franchised locations were opened across the country and their products became synonymous with special occasions, entertaining and everyday meals. In 2014, the company was acquired by Searchlight Capital Partners and new leadership undertook the task of a full rebrand, extensive store renovations and a complete menu overhaul to exclude ingredients like artificial flavours, colours and sweeteners. Today, M&M Food Market proudly operates 315 franchised stores and over 2,000 M&M Express locations through innovative partnerships with top retailers including Rexall, Beaudry-Cadrin and Home Hardware.
"We are excited about the next chapter for M&M and applaud Parkland's innovative integrated retail approach that is poised for strong expansion of the brand," said Erol Uzumeri, Founding Partner of Searchlight Capital. "We extend our warm appreciation and gratitude to M&M's stellar management team, employees, and franchise partners as they have established M&M as a high-quality, trusted food brand for Canadians nationwide."
The transaction is subject customary closing conditions, including approval under the Competition Act (Canada). Parkland and M&M expect to close the transaction in the first quarter of 2022.
M&M Food Market was advised by RBC Capital Markets, CG Sawaya Partners, and Goodmans LLP.
About M&M Food Market:
Founded in 1980, M&M Food Market is Canada's leading retailer of frozen foods and has helped Canadians put delicious meals on the table by offering consumers products that were prepared with care using authentic recipes and high-quality ingredients along with personalized customer service, all within a uniquely convenient shopping environment. Following the beginning of a significant rebranding effort in 2016 – including the name change from M&M Meat Shops, a new store design, new products and packaging, a new website and newly trained Meal Advisors – M&M Food Market has been focused on innovation across virtually every aspect of the business. It is headquartered in Mississauga, Ontario, with locations in all ten provinces, Yukon and the Northwest Territories. M&M has been recognized as one of Canada's Best Managed Companies for 11 years in a row. M&M products include delicious and convenient options across virtually every food category including appetizers, prepared meals, seafood, meats and poultry, vegetables, sides, bakery and desserts and come in formats ranging from individual portions to family-sized options.
About Parkland
Parkland is a leading convenience store operator and independent supplier and marketer of fuel and petroleum products. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.
Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.
About Searchlight Capital Partners
Searchlight is a global private investment firm with more than $9 billion in assets under management and offices in New York, London and Toronto. Searchlight seeks to invest in businesses where its long-term capital and strategic support accelerate value creation for all stakeholders. For more information, please visit www.searchlightcap.com.
Forward Looking Statement
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements"). When used in this news release the words "expect", "will", "could", "would", "believe", "continue", "pursue" and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the successful completion of the transaction described in this news release; the timing thereof; the expected benefits of the transaction; and the creation a loyalty coalition between the M&M and JOURNIE™ rewards programs. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. M&M does not undertake any obligations to publicly update or revise any forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, failure to complete the transaction; failure to satisfy the conditions to closing of the transaction; failure to realize all or any of the anticipated benefits of the transaction; and general economic, market and business conditions.
SOURCE M&M Food Market
For media inquiries please contact: Christopher Wood, Media Profile for M&M Food Market, 416-342-1807, [email protected]
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