TORONTO, ONTARIO--(Marketwired - Jan. 21, 2014) - Gateway Newstands, the largest operator of newsstands in North America, has agreed to purchase 34 urban retail stores across Canada from LS Travel Retail - including outlets operating under the banner of Great Canadian News, Xpress, Relay, United Cigar Store and Maison de la Presse.
"We are thrilled with this acquisition," said Michael Aychental, CEO of Gateway Newstands. "It increases our size in Canada by 20 per cent, and gives us more prime newsstands at which to serve our valued customers."
The deal brings the number of Gateway stores in North America to 554, with 422 in Canada, mostly in Ontario. The company's US locations are concentrated in New York City and Chicago.
Financial details of the transaction, which will close on or before May 14, 2014, were not disclosed.
Among the stores purchased are the Great Canadian News outlets at BCE Place, Yonge and St. Clair, Yorkdale Shopping Centre and the Royal York Hotel Gift Shop in Toronto, multiple locations in Montreal, Ottawa, and Toronto, and other prime locations coast to coast in Eastern and Western Canada.
Gateway's Newstands are located in transit locations (including subways, bus stations, train stations and other transit venues), office towers, shopping centres, hospitals and other institutional venues. The company operates 65 newsstands and kiosks within the Toronto Transit Commission.
The newly-purchased stores will be franchised, said Gateway President David Goldman.
"It's a highly successful business model that has greatly benefited our company and our dedicated franchisees," said Goldman. "We're especially proud that many new Canadians have gotten their start in this country with Gateway, and have developed businesses that have brought prosperity to their families."
Banners on the new stores will be changed to 'Gateway Newstands' following the completion of the transaction. LS Travel Retail will continue to own and operate its airport and transit locations, which are not included in the purchase agreement.
About Gateway Newstands
Gateway Newstands is in the business of serving the daily merchandise needs of premier commercial retail and transit developments. Established in 1983, it operates 554 stores throughout Canada and the United States, and is the largest newsstand retailer in transit locations in North America. We pride ourselves on being a trusted and reliable partner.