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MISSISSAUGA, Ontario — Walmart Canada has agreed to acquire one distribution center, 12 store leases and one owned property from Target Canada $165 million (Canadian).
Walmart said Friday that it also plans to invest another $185 million to renovate the 13 stores and the Cornwall, Ontario, distribution center, bringing its total investment to about $350 million. Four of the stores are in Ontario, four are in Quebec, four are in British Columbia and one is in Manitoba.
The company noted that the transactions are subject to the approval of the court in accordance with Target Canada’s Companies’ Creditors Arrangement Act proceedings and other customary conditions.
Plans call for work on all locations to start within the next few months, and grand opening dates for each location will be announced over the coming months, Walmart Canada said.
“Walmart is committed to the Canadian market, and this agreement helps us accelerate our growth plans ensuring more Canadians have access to our low prices,” Dirk Van den Berghe, president and chief executive officer of Walmart Canada, said in a statement. “The 13 stores acquired are well-situated, and we are excited to bring Walmart’s successful Supercenter offer to customers in these markets. We have served millions of loyal customers and look forward to continuing to serve them through our stores and growing e-commerce business.”
Walmart added that it plans to hire about 3,400 new employees in British Columbia, Manitoba, Ontario and Quebec, and the projects are expected to generate approximately 1,500 trade and construction jobs.
The $350 million Canadian investment comes in the wake of a $340 million investment announced in February by Walmart Canada that includes 29 super center projects, expansion of the retailer’s distribution network and e-commerce projects.
Target Canada shut the last of its 133 discount stores to the public and completed its inventory liquidation last month. The company also closed its three distribution centers and Mississauga, Ontario, headquarters. Target unveiled its plan to exit the Canadian market in mid-January, when it announced that Target Canada filed an application for protection under the Companies’ Creditors Arrangement Act (CCAA) with the Ontario Superior Court of Justice (Commercial List) in Toronto.
