Mr. Luc L'Archeveque reports

EMPIRE ANNOUNCES AGREEMENT TO ACQUIRE MONTREAL'S MAYRAND FOOD GROUP

Empire Company Ltd. and its wholly owned subsidiary, Sobeys Inc., have entered into an agreement to acquire Mayrand Food Group Inc., a long-established Quebec food retailer operating four large-format locations across the greater Montreal area.

The transaction is being completed pursuant to a court-approved process and remains subject to customary closing conditions, including receipt of court approval and required regulatory approvals. The transaction is expected to close in first quarter of fiscal 2027.

Founded more than 110 years ago, Mayrand is a trusted Quebec retail banner known for its broad product assortment, competitive pricing, and strong relationships with both retail and food service customers. The business operates four stores in Anjou, Laval, Brossard and Saint-Jerome.

"Mayrand is a respected Quebec institution with deep local roots and a loyal customer base," said Luc L'Archeveque, chief customer officer, Empire. "This transaction allows the Mayrand brand to continue serving customers and communities while benefiting from Empire's scale, operational expertise and long-term commitment to food retail in Quebec."

The acquisition provides Empire with a strategic entry into the Quebec discount/warehouse food market, a growing segment serving both households and food service operators. Mayrand's differentiated positioning, large-format stores and extensive assortment complement and strengthen Empire's existing retail portfolio.

Empire intends to maintain the Mayrand banner and grow the business as a distinct brand, building on its strong reputation for value, quality and product depth. Mayrand will benefit from Empire's capabilities in merchandising, purchasing, logistics, real estate, treasury and other operational support functions.

As part of the transaction, Empire will ensure continuity for the Mayrand work force and stability for customers, suppliers and business partners.

About Empire Company Ltd.

Empire is a Canadian company headquartered in Stellarton, N.S. Empire's key businesses are food retailing, through wholly owned subsidiary, Sobeys, and related real estate. With approximately $32-billion in annual sales and $17-billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 129,000 people. Additional financial information relating to Empire, including the company's annual information form, can be found on the company's website or on SEDAR+.

About Mayrand Food Group Inc.

Since 1914, Mayrand Food Group has been helping Quebecers with their everyday food needs, offering a unique selection of fresh, local and international products. Proudly Quebec based, Mayrand and its nearly 300 dedicated employees serve both retail consumers and food service professionals through its four stores across greater Montreal. Recognized for its compelling value proposition, broad offering and long-standing market presence, Mayrand is a trusted participant in Quebec's food retail ecosystem.

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