08:47 AM EST, 02/19/2025 (MT Newswires) -- Colabor Group ( COLFF ) said Wednesday that it agreed to acquire some assets of Quebec-based food distributor Alimplus for $51.5 million.

The sale includes Alimplus' food distribution assets and its Tout-Pret subsidiary, which specializes in distributing cut fruits and vegetables in Quebec. The four stores of Groupe Mayrand Alimentation are not part of the deal, but Colabor ( COLFF ) said it will also have a distribution agreement with them for an initial six-year term.

Alimplus operates three warehouses that had $225 million in sales last year.

"The acquisition of Alimplus' distribution activities significantly accelerates our growth plan and positions us as a Quebec leader in food distribution," said Louis Frenette, Colabor's ( COLFF ) president and CEO."Highly strategic, this acquisition allows us to acquire a customer base in coveted territories, create synergies and offer cross-selling opportunities, particularly with our private brand and Tout-Pret's products."

The deal is expected to close in the second quarter.

In connection with the agreement, Colabor ( COLFF ) said its senior first-ranking secured credit facility increased to $95 million while its $15 million subordinated debt with Investissement Quebec (IQ) was extended. The company also announced a new financing agreement for a $15 million deeply subordinated debt with IQ.

Colabor's ( COLFF ) share price fell 3.5% on Tuesday to $0.82 on the TSX.