September 24, 2018 / 11:12 AM / in 2 years

UPDATE 1-Canada's Empire Co to acquire Farm Boy in C$800 mln deal

(Adds details on deal, CEO comment)

Sept 24 (Reuters) - Canadian food retailer Empire Co Ltd said on Monday it would acquire privately held grocer Farm Boy Inc for an enterprise value of C$800 million ($618 million) to increase its presence in Ontario.

Ottawa-based Farm Boy, which specializes in “farm-to-table” wholesale, will be acquired from Berkshire Partners, following which it will be set up as a separate company within Empire’s structure.

“It will be a growth vehicle in urban and suburban markets,” Empire Chief Executive Michael Medline said, adding that he expected earnings before interest, tax, depreciation and amortization to double in five years.

The deal is expected to close at the beginning of 2019. Greenhill & Co Canada Ltd, Scotiabank and KPMG LLP were the financial advisers to Empire Co Ltd.

$1 = 1.2945 Canadian dollars Reporting by Karan Nagarkatti in Bengaluru

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