Sobeys owner Empire Company Ltd. is expanding its presence in Ontario, with a $357-million deal to buy 51 per cent of grocery store chain Longo’s and its e-commerce service, Grocery Gateway.
The deal announced on Tuesday adds 36 Longo’s stores in the Greater Toronto Area and Southern Ontario to Empire’s retail portfolio. The Stellarton, N.S.-based grocer already owns banners that include Sobeys, Safeway, FreshCo, Foodland and others. It is also the second acquisition of a smaller Ontario grocer since Michael Medline was appointed Empire’s chief executive in 2017 – the following year, the company bought a majority stake in Farm Boy. Like that chain, Longo’s will continue to operate as a separate business, led by its current management.
The deal gives Empire a second major player in the e-commerce grocery business in Southern Ontario. Longo’s bought Grocery …