Loblaw Companies Limited acquires Shoppers Drug Mart Corporation (2024)

Loblaw Companies Limited completed the acquisition of Shoppers Drug Mart Corporation for $12.4 billion in cash and stock, bringing together the nation's number one grocery retailer and its number one pharmacy and beauty retailer.The deal was announced in July 2013.

The transaction, the largest Canadian retailer acquisition in history, transforms the Canadian retail landscape.The acquisition brings Loblaw and Shoppers within closer reach of more Canadians with more than 2,300 stores (corporate, franchised and associate-owned) and nearly 1,800 pharmacies totalling 65 million square feet of selling space.

On a pro-forma basis in 2013, the combined company generated revenue in excess of $43 billion and EBITDA of $3 billion. The combination of companies is expected to yield cost synergies of $300 million phased in evenly over the next three years. First-year synergies are expected to come from the cost of goods sold and purchasing efficiencies in goods not for resale. Planned synergies are not dependent on any store closings.

Torys LLP represented Loblaw and Weston with a team including Peter Jewett, Cornell Wright, Raegan Kennedy, Adrienne DiPaolo and David Forrester (M&A); Tom Zverina, Adam Delean and Adrienne Love (lending); James Tory and Andrew Gray (litigation); Mitch Frazer and Lynne Lacoursière (pension and employment); Jay Holsten and Omar Wakil (competition); and Conor McCourt (intellectual property) and John Unger (tax).

Borden Ladner Gervais LLP represented Loblaw, with respect to competition matters, with a team including Rob Russell, Denes Rothschild, Zirjan Derwa, Neil Morgan and Jonathan Asselstine.

Osler, Hoskin & Harcourt LLP represented Shoppers with a team led by Clay Horner and Doug Bryce corporate) and Peter Glossop (competition), and included Shuli Rodal and Matthew Anderson competition); Emmanuel Pressman, Don Gilchrist, David Vernon, Alex Gorka and Rob Anton corporate); Firoz Ahmed, Dov Begun and Amanda Heale (tax); and Laura Fric and Mark Gelowitz litigation).

Davies Ward Phillips & Vineberg LLP represented Bank of America Merrill Lynch and the syndicate of lenders in connection with the $5.1-billion financing for the acquisition with a team including Patricia Olasker and Steven Harris (M&A); and Carol Pennycook and Derek Vesey (lending).

Loblaw Companies Limited acquires Shoppers Drug Mart Corporation (2024)


Did Loblaws buy out Shoppers Drug Mart? ›

Loblaw Companies Limited completed the acquisition of Shoppers Drug Mart Corporation for $12.4 billion in cash and stock, bringing together the nation's number one grocery retailer and its number one pharmacy and beauty retailer. The deal was announced in July 2013.

How much was Shoppers Drug Mart bought for? ›

On July 15, 2013, Loblaw Companies announced that it would acquire Shoppers Drug Mart for $12.4 billion, pending shareholder and regulatory approval. The deal was approved by the Competition Bureau on March 21, 2014, and completed on March 28, 2014.

What is the difference between Loblaw and Loblaws? ›

Headquartered in Brampton, Ontario, Loblaws is a subsidiary of Loblaw Companies Limited, Canada's largest food distributor.

Who owns Loblaw company Limited? ›

Why are people boycotting Loblaws? ›

Boycotters looking for grocery chain to decrease prices

This means they are refusing to shop at stores owned by the company. They say the boycott is in protest of Loblaw continuing to increase its prices despite the continued high cost of living for Canadians. Loblaw says it already takes steps to combat high prices.

Why is Shoppers Drug Mart so popular? ›

In the early days, Shoppers Drug Mart secured brands not typically sold in the mass market because its stores didn't overlap with department stores or specialty boutiques. Today, the retailer maintains customer loyalty and an upscale ambiance so that brands have no issue existing under a Shoppers Drug Mart roof.

Is there a Shoppers Drug Mart in the USA? ›

In 1972, Shoppers partnered with supermarket and discount department store operator Steinberg Inc. to launch the Pharmaprix chain in Quebec (Steinberg owned its portion until 1980). Shoppers expanded into the United States in 1974, when it opened a store in Palm Beach Gardens, Florida.

Is Shoppers Drug Mart only in Canada? ›

Shoppers Drug Mart is Canada's leading pharmacy retailer with more than 1,300 pharmacist-owned locations across the country.

What is the largest pharmacy chain in Canada? ›

As Canada's largest integrated network of pharmacies, McKesson Canada encompasses some of the most recognized pharmacy brands in the industry. These brands, include corporately owned Rexall, Well.ca, and independent pharmacy banners Guardian, I.D.A., Remedy'sRx, The Medicine Shoppe, Uniprix, and Proxim.

Who is the largest grocery chain in Canada? ›

Canada: leading food retailers 2022, by market share

In 2022, Loblaws held the top spot with an estimated 29 percent share of the grocery retail industry in Canada.

What family owns Loblaw? ›

It is controlled by George Weston Limited, a holding company controlled by the Weston family; Galen G. Weston is the chair of the Loblaw board of directors, as well as chair of the board of directors and CEO of Canada-based holding company George Weston.

Is Safeway owned by Loblaws? ›

The Canadian assets of Safeway are fully owned and operated by Sobeys Inc. President of Sobeys Inc. Western Canada: Jason Potter. Safeway employs over 28,000 Canadians.

Is Loblaws in the US? ›

Loblaw Groceterias expands throughout Ontario and into New York State, forming an American company headquartered in Buffalo.

Who is the CEO of Loblaw? ›

Willard Galen Garfield Weston (born December 19, 1972), known as Galen Weston Jr. or Galen G. Weston, is an Irish-Canadian businessman and a member of the Weston family. He is chairman and chief executive officer (CEO) of George Weston Limited, and executive chairman and president of Loblaw Companies Limited.

How much money do I need to open a grocery store in Canada? ›

Depending on the size of the store, Profitable Venture recommends that you budget for up to $250,000 for a small independent grocery store; over $300,000 for a medium-sized business, and over $1 million for a large building. On top of that, let's assume that you franchise the Loblaw or Sobeys brand.

What stores are owned by Loblaws? ›

Our family includes: Atlantic SuperstoreTM, Dominion®, Loblaws®, Maxi®, No Frills®, Provigo Le Marché®, Valu-MartTM, Real Canadian Superstore®, Wholesale ClubTM, Your Independent GrocerTM and ZehrsTM.

What was the previous name of Shoppers Drug Mart? ›

He lived at York Mills and Bayview in Toronto, Ont., just a stone's throw away from a Koffler's Drug Store (the former name of Shoppers Drug Mart).

When did Loblaws buy T&T? ›

On September 28, 2009, Loblaws Inc., a subsidiary of Loblaw Companies Limited, completed the purchase of T&T Supermarket Inc. for the purchase price of $225 million (subject to certain adjustments).

Is Loblaws bigger than walmart? ›

In 2022, Loblaws held the top spot with an estimated 29 percent share of the grocery retail industry in Canada. Walmart, which is an American multinational retail company, owned roughly eight percent of the Canadian market.


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