The transaction provides for a purchase price of approximately
Brookfield is entering into an agreement with Imperial Oil to rebrand the gas station portfolio to the Mobil fuel brand. This will mark the introduction of the Mobil fuel brand in
The gas stations will continue to offer Loblaw's industry-leading PC Plus loyalty program, thereby combining the loyalty proposition that customers associate with Loblaw with the high quality gas station offering that customers in other markets have come to expect from the Mobil brand.
"In Brookfield we have a strategic partner with an experienced management team and a strong business track record," said Sarah Davis, President, Loblaw Companies Limited. "They are committed to preserving and growing the elements of the business that matter most to our customers - high quality fuel service and convenience along with PC Plus loyalty benefits. This is a positive outcome for our customers, our gas station operators, and our company."
"Our investment in Loblaw's leading portfolio of gas stations presents an opportunity to own a business with significant scale, strong customer loyalty, and compelling opportunities for further growth," said Cyrus Madon, CEO of Brookfield Business Partners. "This transaction aligns with our strategy of owning and adding value to high quality businesses with solid long-term fundamentals in sectors we know well. We look forward to working with Loblaw to enhance and grow the current network of gas stations."
Loblaw expects to use the proceeds for general corporate activities.
RBC Capital Markets is acting as financial advisor to Loblaw. Scotiabank is acting as financial advisor to Brookfield Business Partners.
About Loblaw Companies Limited (TSX: L)
Loblaw Companies Limited is
With more than 2,300 corporate, franchised and Associate-owned locations, Loblaw, its franchisees, and Associate owners employ approximately 198,000 full- and part-time employees, making it one of
About Brookfield Business Partners LP (NYSE: BBU)(TSX: BBU.UN)
Brookfield Business Partners is a business services and industrial company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the
Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with approximately
Loblaw cautionary statement regarding forward-looking statements and information: This Press Release contains forward-looking statements about Loblaw's objectives, plans, goals and aspirations. Forward-looking statements in this Press Release include statements relating to Loblaw's planned divesture of its gas bar business and its use of proceeds. These forward-looking statements reflect Loblaw's current beliefs and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Loblaw's beliefs and assumptions are inherently subject to uncertainties and contingencies regarding future events and as such, are subject to change. Numerous risks and uncertainties, including risks and uncertainties not presently known to Loblaw, could cause Loblaw's actual plans, as described in this Press Release, to differ materially from those expressed in the forward-looking statements, including, but not limited to, the parties' ability to obtain required regulatory approvals and to satisfy conditions to closing, Loblaw's ability to effectively manage its loyalty program, and changes in economic conditions, including changes in fuel prices. Loblaw can give no assurance that such beliefs and assumptions will prove to be correct. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Loblaw's expectations only as of the date of this Press Release. Loblaw disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Brookfield Business Partners cautionary statement regarding forward-looking statements and information: This Press Release contains "forward-looking information" for Brookfield Business Partners within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of Section 27A of the
Contacts:
Media:
Loblaw:
Loblaw Public Relations
[email protected]
Brookfield:
Claire Holland
(416) 369-8236
[email protected]
Investors:
Loblaw:
Sophia Bisoukis
905-861-2436 x613267
[email protected]
Brookfield:
Gwyn Hemme
(416) 359-8632
[email protected]
Source: Brookfield Business Partners and Loblaw Companies Ltd.
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