Empire Company Ltd., whose holdings include grocery retailer Sobey's Inc, said it reached a definitive agreement to sell all 56 of its retail fuel sites in Western Canada to Canadian Mobility Services Ltd., a wholly owned subsidiary of Shell Canada, for $100 million in cash.
The Stellarton, Nova Scotia-based company said the deal is subject to customary conditions, including regulatory approvals. Empire expects the transaction to close in the first quarter of fiscal 2024. Proceeds from the sale will be used for general corporate purposes.
Shell said the gas stations are co-located with grocery stores of Sobey's and its affiliates in Western Canada and Western Ontario.
"Today's announcement supports Shell Canada's ambitions for continued growth and to be leaders through the energy transition," said Kent Martin, general manager of Shell Canada Mobility, in a statement. "These 56 locations will provide opportunities to offer customers expanded fueling options ... and enable growth of non-fuel sales through an enhanced convenience retail offering."
The stations will be converted to the Shell brand when the deal closes.