EDMONTON, ALBERTA, Feb 21, 2005 (CCNMatthews via COMTEX) -- PLANET ORGANIC HEALTH CORP. (CA:POH) ("Planet Organic" or the "Corporation"), which owns large natural food supermarkets in Edmonton, Victoria, Calgary, Port Coquitlam, Halifax and a chain of supplement and market stores across Canada, announced today that it has signed a letter of intent to acquire Newfound Health.
Newfound Health is a profitable company with 17 franchise locations throughout Alberta. Azim Velji, the President of Newfound Health, will stay on to provide consulting and management assistance to Planet Organic during the transition. Newfound's management stated, "This is an excellent move for our group of stores. It provides us with a valuable exclusive private label to assist our stores in reaching the next level." The Newfound chain will operate under the Sangster division, which is headed up by Roy Sangster. " We're glad to have the Newfound chain under our umbrella. It will add significant revenue and more bottom line to our existing operations." Roy Sangster commented.
"The Newfound Health acquisition represents another strategic move for Planet Organic," said Planet Organic VP Corp Development and CFO Darren Krissie. "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. We look forward to expanding our team to include the experienced and professional franchisees and staff at Newfound Health."
Planet Organic recently acquired Sangster's Health Centres, a 35-store chain with franchised and corporate outlets across Canada. In just over 3 years, Planet has grown from 1 small market store to 40 locations and recently closed the previously announced acquisition of Trophic, a profitable leading manufacturer and distributor of vitamins, minerals and herbal supplements.
The terms of the agreement will be disclosed upon closing the acquisition.
The transaction is arms length and will not result in change of control of Planet Organic Health Corp. Closing is subject to a number of conditions, including TSX Venture Exchange approval and further due diligence by Planet Organic.
Planet Organic operates natural food supermarkets in Edmonton, Victoria, Calgary, Port Coquitlam and Halifax in addition to 35 health centres throughout Canada. Planet Organic provides its customers with the convenience of one-stop shopping by offering a broad product selection in all merchandise categories. Planet Organic's objectives are to consolidate the fragmented natural and organic foods industry in Canada and the U.S. via acquisitions, mergers and new retail operations.
This news release contains forward-looking information. Actual results may vary significantly from estimates.