Canada’s second-largest retail grocer and distributor, Sobeys Inc, has announced the completion of the sale of all of the assets of its SERCA Foodservice operations.


SERCA has been acquired by SYSCO Corporation, the US’s largest foodservice marketer and distributor. SERCA’s Pacific Division operations have been acquired by Gordon Food Service, which will operate in British Columbia as Neptune Food Service.


The net after-tax proceeds to Sobeys from the transactions will be about C$360m (US$225.27m) which will be applied primarily toward debt reduction.


The sale of SERCA Foodservice strengthens the financial condition of Sobeys, including a substantial improvement in debt and interest coverage ratios and growth in the company’s reported EBITDA margin.


“The sale supports our determination to focus our undivided attention on growing our core retail food business across Canada,” said Bill McEwan, president and CEO of Sobeys: “In addition, we have entered into a strategic alliance with the continent’s largest and best foodservice operator, and we look forward to working with SYSCO to explore opportunities together.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“SERCA Foodservice is a tremendous addition to our organisation and will assist in our effort to expand our presence in Canada,” said Charles H. Cotros, SYSCO’s chairman and CEO: “We welcome the SERCA team and look forward to the opportunities they will provide us in Canada.”