Date Closed

November 4, 2013

Lead Office

Toronto

Value

5.80 Billion CAD

On November 4, 2013, Sobeys Inc., a wholly owned subsidiary of Empire Company Limited, completed its C$5.8 billion acquisition of all of the assets of Safeway Canada, in accordance with the asset purchase agreement announced June 12, 2013.

The deal includes the acquisition of 213 stores, 199 in-store pharmacies, 62 gas stations, 10 liquor stores, four distribution centres and 12 manufacturing facilities, primarily located in western Canada. The purchase was funded through an Empire equity issue completed in July 2013, proceeds from a Sobeys bond offering completed in August 2013, proceeds from the disposition of 70 Safeway Canada properties to Crombie Real Estate Investment Trust and bank credit facilities.

Sobeys, headquartered in Stellerton, Nova Scotia and Mississauga, Ontario, is Canada’s second-largest grocery chain.

Empire, headquartered in Stellarton, Nova Scotia, is primarily focused on food retailing and related real estate.

McCarthy Tétrault LLP represented Empire Company and Sobeys as tax counsel, with a team led by Douglas Cannon and including Wendy Brousseau.