Colabor Group Inc. completes the acquisition of T. Lauzon Ltd and $30 million private placement financing

BOUCHERVILLE, QC, March 4, 2013 /CNW Telbec/ - Colabor Group Inc. (TSX: GCL) ("Colabor" or the "Company") today 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 $13 million (the "Acquisition").

T. Lauzon 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. As a well-known and established distributor in Québec, it holds a reputation for excellent products and experienced, skilled employees providing effective and flexible service to the restaurant and hotel industries from a recently renovated 68,000 square feet federally approved plant located in Montreal. Colabor will continue to operate from these premises which will be leased.

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 $7.55 per Share for gross proceeds of $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 $15 million.

A portion of the net proceeds of the Private Placement and the Offering was used to finance the Acquisition. 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.

This press release is not an offer to sell or the solicitation of an offer to buy securities in the United States. The Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and, accordingly, will not be offered, sold or delivered, directly or indirectly, within the United States, absent an exemption from registration.

Colabor is a wholesaler and distributor of food and non-food products serving the food-service (cafeterias, restaurants, hotels, restaurant chains, etc.) and retail (grocery stores, convenience stores, etc.) markets.

Additional information can be found in the information documents filed by the Colabor Group Inc. with securities regulators, at www.sedar.com.

SOURCE: COLABOR GROUP INC.