Metro supermarket chain selling Distagro food service division to Sysco Canada

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MONTREAL - Supermarket chain Metro Inc. is selling its Distagro foodservice division, which supplies restaurants and gas station convenience stores, to Sysco Canada.

The transaction is slated to close in mid-December and will see 140 employees at its warehouse in Boucherville, Que., transferred to the subsidiary of Sysco Corp. (NYSE:SYY).

Financial terms of the deal weren't disclosed in Monday's announcement.

Metro (TSX:MRU) will retain its warehouse in St-Jean-Port-Jolie, Que., which employs less than 100 people and provides food to a series of small convenience and grocery store banners.

The operator of Metro, Super C and Food Basics grocery stores plus 250 pharmacies under the banners such as Brunet, The Pharmacy and Drug Basics, said it is selling the division to focus on the growth of its core business.

Metro has annual sales of more than $11 billion and 65,000 employees. It says the transaction won't have a material impact on its results.

Sysco is a global leader in selling, marketing and distributing food products to more than 400,000 customers such as restaurants, health care and educational facilities and is North America's largest supplier of prepared meals. The Canadian subsidiary has facilities across the country.

Organizations: Metro Inc., Sysco Corp., NYSE TSX

Geographic location: MONTREAL, Boucherville, St-Jean-Port-Jolie North America

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