July 24, 2009 / 12:34 PM / 9 years ago

UPDATE 1-Loblaw to buy Asian food retailer for C$225 mln

* Deal worth C$225 million

TORONTO, July 24 (Reuters) - Loblaw Co (L.TO), Canada’s biggest grocery store chain, expanded its multi-cultural offering on Friday with the purchase of Canada’s largest Asian food retailer T&T Supermarket, in a deal worth C$225 million.

T&T Supermarket, which offers a mix of fresh and prepared Asian food, operates 17 stores in British Columbia, Alberta and Ontario and four distribution centers.

Loblaw said the deal is expected to close by the end of the year, subject to consents and regulatory approvals.

The company said C$191 million of the purchase price will be funded by cash and the remaining through preferred shares issued by T&T, the value of which will be tied to the future performance of the business.

It is expected that the acquisition will be add to Loblaw’s earnings in the first year following closing.

The Asian food retailer booked sales of about C$514 million, in the 12 months ending June 30.

TD Securities Inc acted as financial adviser to T&T on the transaction. ($1=$1.08 Canadian) (Reporting by Scott Anderson)

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