Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — Merger or Acquisition (September 2018)
15 slides from Empire Co Ltd Class A's merger presentation, Sep 24, 2018
Slide 1: Empire Company Limited to Acquire Farm Boy
Empire Company Limited to Acquire Farm Boy September 24, 2018
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING INFORMATION This document contains forward-looking statements which are presented for the purpose of assisting the reader to understand management’s expectations regarding the Company’s strategic priorities, objectives and plans. These forward-looking statements may not b
Slide 3: Participants at Today's Presentation
Participants at Today’s Presentation Michael Medline Michael Vels Jean-Louis Bellemare Jeff York President & Chief Chief Financial Officer of Founder & Co-CEO of Co-CEO of Farm Boy Executive Officer of Empire and Sobeys Farm Boy Empire and Sobeys 2
Slide 4: Overview of Farm Boy
Overview of Farm Boy Founded in 1981, Farm Boy Inc., (“Farm Boy”) is an Ontario- based retail grocer that has a focus on high quality and locally- sourced meat and produce and offers a wide range of exceptional private label and prepared foods and renowned customer service In 2012, Berkshire Par
Slide 5: Transaction Overview
Transaction Overview Empire, through a subsidiary, will acquire Farm Boy based on a total enterprise value of $800 million Purchase Farm Boy will be set up as a separate company within Empire’s structure Price Farm Boy’s Co-CEOs will reinvest in 12% of the continuing Farm Boy business Repres
Slide 6: Key Investment Highlights
Key Investment Highlights 1 Aligned with Empire’s Strategic Priorities 2 Leading Specialty Food Retailer with Strong Brand Loyalty 3 Attractive, Scalable Platform Primed for Growth 4 Enhances Presence in Urban Markets with Established, Well-Known Brand in Ontario 5 Exceptional Private Label Off
Slide 7: Aligned with Empire's Strategic Priorities
Aligned with Empire’s Strategic Priorities Strategic Priorities Reset our Bolster our Brand Win in Our Stores Enhance Discount Win E-Commerce Foundation Strengthen the Improve service and Expand discount to Launch home Successful emotional offering in our Western Canada delivery through completion o
Slide 8: Leading Specialty Food Retailer with Strong Brand Loyalty
Leading Specialty Food Retailer with Strong Brand Loyalty Differentiated value proposition with exceptional private label and chef-inspired prepared food offering Unique Grocery Retail Concept Wide Selection of Highest Quality, Fresh Foods Majority of the Store is Fresh Premium-Quality Private Bra
Slide 9: Attractive, Scalable Platform Primed for Growth
Attractive, Scalable Platform Primed for Growth 3-Year Average SSSG Sales EBITDA (2015A – 2017A) CAGR: CAGR: 18% 21% 5.3% 1.7% 1.3% Average of Average of 2014A 2015A 2016A 2017A 52-weeks 2014A 2015A 2016A 2017A 52-weeks Canadian U.S. Grocery ending ending Grocery Peers(2) 14-Jul-18 14-Jul-18 Peers(1
Slide 10: Attractive, Scalable Platform Primed for Growth
Attractive, Scalable Platform Primed for Growth Expect to double the business through a combination of new store openings and conversion of existing Sobeys locations in the next 5 years Continue Best-in-Class SSSG Existing Markets are Underpenetrated Enhance assortment of Farm Boy private label pr
Slide 11: Enhances Presence in Urban Markets with Established, Well-Known Brand in Ontario
Enhances Presence in Urban Markets with Established, Well- Known Brand in Ontario Flexible Formats Advances Ontario Strategy, Accelerating Ontario Presence and GTA Growth Ottawa Traditional ~28,000 sq. ft. Kingston Toronto Store Count by Region Mixed Use Waterloo Hamilton ~20,000 sq. ft. 8% 11% Lond
Slide 12: Exceptional Private Label Offering
Exceptional Private Label Offering 1 2 3 Comprehensive Product High Quality, Premium Exclusive Offering to be Offering Products Available Through E- Commerce Partnership Farm Boy Private Label Premium private label Private Label products are products supply multiple offering, meticulously available
Slide 13: Retention of Strong and Driven Management Team
Retention of Strong and Driven Management Team Farm Boy will be managed separately from existing Sobeys business and will continue to be run by Jean-Louis Bellemare and Jeff York, who will report to Empire President and CEO, Michael Medline Jean-Louis, Jeff and other senior management to reinves
Slide 14: Key Investment Highlights
Key Investment Highlights 1 Aligned with Empire’s Strategic Priorities 2 Leading Specialty Food Retailer with Strong Brand Loyalty 3 Attractive, Scalable Platform Primed for Growth 4 Enhances Presence in Urban Markets with Established, Well-Known Brand in Ontario 5 Exceptional Private Label Off
Slide 15: Thank You
See ee Thank You
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