There are some reasons behind this deal inside T&T. This also reminds me of the SAMS Club's closure couple months ago.

At the first sight, a deal worth C$225mm, wow, that's a lot of money. Immediately, there is the question" how did they arrive at this number?"

Ok, all the valuation techniques. Fine!

But shouldn't we figure out the most important piece of information first, before we jump into any sort of conclusion?

A Deal worth $$. First of all, what's in this deal? does this deal provide valuation of the asset? or shareholder's equity? Is this deal assuming existing debt that T&T owes to its creditors? Therefore, before anybody jump into valuation techniques of P/S or P/E or whatever those valuation techniques tell us to do. Maybe we should step back a bit and realize that there are some important information missing from this article

Cherios.
.

朋友很认真的告诉我，他在几个月前就知道大统华快挨不住了，因为陈水扁被收押。陈是大统华的大股东之一，大统华开的店的地全是自己出钱买和店也是自己盖的，陈贪污的钱就留到这里来。其实大统华是有赚钱的，因为台湾的老马派人来海外收钱了，卖掉扁的物业换回￥￥。 还有 美国的 大华 超市 也是扁有份的，也在卖了。。

本文发表在 rolia.net 枫下论坛The T&T Acquisition
Acquiring T&T Supermarkets was a wise move by Loblaw, but now the hard part begins.

T&T is a relatively upscale Asian supermarket chain, whose newer stores are aimed as much at non-Asians as at Asians. On a sales-per-square foot basis, these are hugely productive units. We believe that Loblaw paid about 8.8x EBITDA and will have about $35 million of synergies (mostly D.C.’s and head offices) over about 24 months, reducing the net multiple to just 3.7x – a great net price.

By our math, T&T adds about 7-cents per share to Loblaw’s F2010 earnings. We are assuming that Loblaw adds at least two T&T stores in F2010, and then accelerates after that, doubling the network over five years.

One of the hidden gems of T&T is the commissary operation in Toronto and Vancouver, which produces the tremendous HMR product in T&T stores. On the conference call, Loblaw mentioned that its own HMR business was dismal this year, chalking it up to consumers not being interested in the category right now. We believe that Loblaw’s HMR business could benefit hugely from T&T’s production and programs. Another benefit is T&T’s unique and innovative
worldwide supplier base, which Loblaw could access for its core conventional and
discount stores.

Although the acquisition is an intelligent acknowledgement of Canada’s critical Asian community, there will be two large challenges for Loblaw:

1, Maintaining the unique culture and character of T&T stores.

2, Aggressively rolling out new T&T stores without cannibalizing its existing business.

Exhibit 3. Estimating The Multiple Paid for T&T
LTM
# of stores 17
Sales 514.0
est EBITDA margin 5.0%
EBITDA 25.7
Implied EV/EBITDA 8.8x
Total synergies 35.0
EV/EBITDA, post-synergies 3.7x
Source: Company reports and CIBC World Markets Inc.更多精彩文章及讨论，请光临枫下论坛 rolia.net

We believe Loblaw views T&T as a strategic asset, and hopes to learn more
about the rapidly growing ethnic food niche.

Average grocery acquisition multiples range from 7.8x-10.7x, suggesting
EBITDA of $21-$29 million, and sales of $350 to $480 million.

We estimate the transaction is accretive by $0.01 to EPS one year after closing.

Table 2: Historical transaction multiples
Acquirer Target EV/EBITDA Date
Empire Company Ltd. Sobeys 7.8x Apr-07
Metro Inc. A&P Canada 10.7x* Jul-05
Empire Company Ltd Oshawa Group 8.4x Oct-98
Loblaw Provigo Group 8.7x Dec-98