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Transaction/Case Details

Colabor completes C$13 million acquisition of T. Lauzon and C$30 million private placement financing

DATE CLOSED

March 4, 2013

BUSINESS SECTOR

Food & Beverage

LEAD OFFICE

Quebec

VALUE

43 Million CAD


OVERVIEW

On March 4, 2013, Colabor Group Inc. ("Colabor") announced the closing of its previously-announced acquisition of substantially all of the assets of T. Lauzon Ltd. ("T. Lauzon") and certain inventory of a related entity to T. Lauzon for a total consideration of approximately C$13 million (the "Acquisition").

Concurrently with the closing of the Acquisition, Colabor has completed the private placement (the "Private Placement") with the Caisse de dépôt et placement du Québec of 1,987,000 common shares of Colabor (the "Shares") at a price of C$7.55 per Share for gross proceeds of C$15 million. The Company has also completed the private placement, on a bought deal basis underwritten by National Bank Financial Inc. (the "Offering"), of 1,987,000 Shares on the same terms as the Private Placement for gross proceeds of C$15 million.

A portion of the net proceeds of the Private Placement and the Offering were used to finance the Acquisition, while the remainder of the net proceeds will be used to reduce its indebtedness and for general corporate purposes.

The Offering was completed on a private placement basis pursuant to "accredited investor" exemptions under National Instrument 45-106, and certain other available and agreed upon exemptions. Shares issued under the Private Placement and the Offering will be subject to a four-month hold period following closing.

Colabor, headquartered in Boucherville, Québec, is a leading distributor of food and related products. The Company distributes 50,000 products to 25,000 institutions and businesses in Québec, Ontario, and Atlantic Canada.

T. Lauzon, headquartered in Montréal, Québec, is an important distributor of Cargill beef brands as Angus Pride, Sterling Silver, producing and processing high quality protein products throughout the provinces of Québec and Ontario.

McCarthy Tétrault LLP represented Colabor as acquiror and issuer, with a team led by Philippe Leclerc, and including Myreille Gilbert, Madeleine Renaud, and Charles-Antoine Soulière.

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