MISSISSAUGA, ON, Jan. 18, 2022 /CNW/ - M&M Food Market ("M&M") today announced that it has entered into a definitive agreement to be acquired by Parkland Corporation ("Parkland"), a leading international operator and consolidator of convenience retail and fuel marketing businesses. The deal comes after M&M's successful efforts to rebrand, the transformation of its stores and food portfolio and as M&M pursues its strategy for additional Canadian growth and international expansion.
Parkland's focus on creating convenience destinations and growing their food offerings is expected to elevate the strength of the iconic M&M Food Market Brand. Through the transaction, Parkland will also benefit from a national network of more than 300 M&M stores, over 2,000 M&M Express locations, nearly 500 specialty frozen products and M&M's deep investments in technology. Parkland will bring scale, and complementary leadership strength that will see M&M Food Market continue to grow in Canada while expanding into new international markets.
"Today marks the start of a bold new chapter for our company and stands as a testament to the vision and tireless work of our dedicated team," said Andy O'Brien, CEO, M&M Food Market. "After a comprehensive examination of our experience, our products, profitability, dedicated franchise partners impressive store network, and our business strategy, Parkland concluded that M&M will be an essential part of achieving their long-term goals in the food industry."
Underpinned by their food-first culture, the M&M team will play a leadership role in advancing Parkland's food strategy. The M&M brand, leadership, franchise system, store network, and office in Mississauga, Ontario will remain in place.
"This acquisition provides a platform to meaningfully grow our food offer across all of our markets," said Ian White, SVP Strategic Marketing & Innovation. "M&M's innovative approach to food preparation, national store network and menu development allows us to offer new, restaurant quality food options that complement our existing quick serve restaurants. We plan to grow this capability in all our operating regions and bolster our connection to customers by combining M&M and JOURNIE™ rewards programs to form a premier loyalty program."
A legacy of growth and innovation
Initially known as M&M Meat Shops, the company's first store opened in Kitchener, Ontario in 1980. Throughout the 1990s and 2000s, franchised locations were opened across the country and their products became synonymous with special occasions, entertaining and everyday meals. In 2014, the company was acquired by Searchlight Capital Partners and new leadership undertook the task of a full rebrand, extensive store renovations and a complete menu overhaul to exclude ingredients like artificial flavours, colours and sweeteners. Today, M&M Food Market proudly operates 315 franchised stores and over 2,000 M&M Express locations through innovative partnerships with top retailers including Rexall, Beaudry-Cadrin and Home Hardware.
"We are excited about the next chapter for M&M and applaud Parkland's innovative integrated retail approach that is poised for strong expansion of the brand," said Erol Uzumeri, Founding Partner of Searchlight Capital. "We extend our warm appreciation and gratitude to M&M's stellar management team, employees, and franchise partners as they have established M&M as a high-quality, trusted food brand for Canadians nationwide."
The transaction is subject customary closing conditions, including approval under the Competition Act (Canada). Parkland and M&M expect to close the transaction in the first quarter of 2022.
M&M Food Market was advised by RBC Capital Markets, CG Sawaya Partners, and Goodmans LLP.