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EDMONTON, Alberta -- Canadian organic supermarket chain Planet Organic said this week that it is acquiring Newfound Health's 17 franchise stores throughout the province of Alberta. Terms of the agreement will be made public upon completion of the acquisition, Planet Organic said.
"With more stores and a stronger presence in Alberta, we will continue to build our revenues, increase our buying power, and offer our customers a wide range of healthy organic and natural living products," said Planet Organic v.p., corporate development and c.f.o. Darren Krissie in a statement. The Newfound stores will be operated under the Sangster division, which is led by Roy Sangster.
Newfound, for its part, said the deal "provides us with a valuable exclusive private label to assist our stores in reaching the next level."
Azim Velji, president of Newfound Health, will stay on to offer consulting and management assistance to Planet Organic during the period of transition.
Over the past three years Planet Organic has expanded from one small location to 40 full-size supermarkets in the Canadian cities of Edmonton; Victoria, B.C.; Calgary, Alta.; Port Coquitlam, B.C.; and Halifax, N.S., in addition to a chain of supplement and market stores across Canada. The company says that its goal is to "consolidate the fragmented natural and organic foods industry in Canada and the U.S. via acquisitions, mergers, and new retail operations."
At the beginning February Planet Organic completed its C$5.5 million (US$4.4 million) acquisition of vitamin, mineral, and supplements manufacturer and distributor Trophic Canada. Additionally, Planet Organic has recently made two other strategic acquisitions: Sangster's Health Centres, a national chain of 35 vitamin and supplement stores in Canada, and Halifax-based Great Ocean Natural Foods organic and natural products retailer.