Colabor Group Expands with Strategic Acquisition of Alimplus Assets

Colabor ( (TSE:GCL) ) just unveiled an update.

Colabor Group Inc. has completed the acquisition of certain assets of Alimplus Inc., including the food distribution assets and the shares of Tout-Prêt Inc., for a revised total of $49.75 million. This acquisition, along with a new distribution agreement, is expected to contribute approximately $225 million in annual sales. To finance the acquisition, Colabor has amended its credit facility and entered into new financing agreements, extending its credit maturity and securing additional funds. This strategic move is poised to enhance Colabor’s market position and operational capabilities in the food distribution sector.

The most recent analyst rating on (TSE:GCL) stock is a Buy with a C$1.85 price target. To see the full list of analyst forecasts on Colabor stock, see the TSE:GCL Stock Forecast page.

Spark’s Take on TSE:GCL Stock

According to Spark, TipRanks’ AI Analyst, TSE:GCL is a Neutral.

Colabor’s overall stock score reflects its stable financial performance, highlighted by strong cash flow generation but offset by low net profitability and moderate ROE. The technical analysis indicates some bearish sentiment, with the stock trading below key moving averages. Although the valuation appears high, the recent strategic acquisition of Alimplus’s assets is a strong positive, potentially driving future growth and market expansion.

To see Spark’s full report on TSE:GCL stock, click here.

More about Colabor

Colabor Group Inc. is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market. The company offers specialty food products such as fish, seafood, and meat through its Broadline activities.

Average Trading Volume: 94,765

Technical Sentiment Signal: Sell

Current Market Cap: C$82.63M

Learn more about GCL stock on TipRanks’ Stock Analysis page.