Mr. Marc Giroux reports

METRO AND FGF BRANDS ENTER INTO A STRATEGIC PARTNERSHIP FOR PREMIERE MOISSON'S COMMERCIAL BAKERY MANUFACTURING OPERATIONS

Metro Inc. and FGF Brands have formed a strategic partnership for the commercial bakery manufacturing operations of Premiere Moisson Group Inc., a subsidiary of Metro. As part of the transaction, FGF will acquire Premiere Moisson Group's production facility located in Baie-D'Urfe for a total consideration of $90-million. This transaction reflects Metro's continuing commitment to focus its investments and resources on its core food and pharmaceutical retail and distribution operations, while simplifying its operating model through the support of a specialized partner.

Upon closing of the transaction, FGF will manufacture and distribute Premiere Moisson products sold in food stores. This agreement will allow Metro to continue offering Premiere Moisson products to customers throughout its Quebec and Ontario food store network while leveraging FGF's manufacturing expertise, innovation capabilities and operational scale.

Premiere Moisson Group will remain a subsidiary of Metro and will retain ownership of the Premiere Moisson brand, its network of 25 retail bakeries across Quebec, its artisanal in-store production operations and its French pastry production facility in Vaudreuil-Dorion, which exclusively supplies its bakery network.

The agreement with FGF provides for the continued production and manufacturing of all Premiere Moisson products. All impacted employees will be transferred to FGF upon closing of the transaction; Metro and FGF will work with the union representing unionized employees as part of the transition.

"This transaction is consistent with our focus on our core food and pharmaceutical retail and distribution activities, while preserving the strength of the Premiere Moisson brand. By partnering with a company recognized for its manufacturing expertise, we will continue to offer customers the Premiere Moisson products they enjoy while benefiting from enhanced innovation, product development capabilities and a more efficient operating structure," said Marc Giroux, chief operating officer, Metro.

"We are pleased to bring our baking expertise to Metro and in particular to Premiere Moisson, a brand renowned for the quality of its products and craftsmanship. This partnership allows us to leverage our manufacturing and innovation capabilities to support the growth of Premiere Moisson's grocery offering while continuing to provide consumers with high-quality products," said Ojus Ajmera and Tejus Ajmera, co-chief executive officers and co-founders of FGF.

The transaction is subject to customary closing conditions for transactions of this nature. It is expected to close during Metro's fourth quarter of fiscal 2026, which ends on Sept. 26, 2026.

About Metro Inc.

With annual sales of more than $22-billion, Metro is a food and pharmacy leader in Quebec and Ontario, providing employment to more than 97,000 people. Its purpose is to nourish the health and well-being of the company's communities. As a retailer, franchisor, distributor, manufacturer and provider of e-commerce services, the company operates or services a network of about 1,000 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Premiere Moisson, and about 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.

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