Last updated on April 8th, 2024
Grocery Outlet Holding Corp. has agreed to acquire United Grocery Outlet from affiliates of Gen Cap America Inc. and current and former UGO management.
With 40 stores and a distribution center, the acquisition of UGO will expand Grocery Outlet’s presence into Tennessee, North Carolina, Georgia, Alabama, Kentucky and Virginia.
“United Grocery Outlet is a natural fit given our similar opportunistic buying strategies, customer value propositions and shared mission of serving our communities,” said RJ Sheedy, president and CEO of Grocery Outlet.
“This acquisition provides Grocery Outlet with scale in a new region as well as a platform for future expansion in the Southeast. We are excited to welcome the United Grocery Outlet team into the GO family, and we look forward to working together on the many growth opportunities ahead.”
Founded 50 years ago, United Grocery Outlet offers customers savings within a treasure hunt shopping environment. UGO maintains relationships with national and regional brands, which enables it to provide food at extreme values.
“We are thrilled to become part of Grocery Outlet and to have found a partner who shares our mission and business strategy. Together, we look forward to growing the positive impact on our community,” said CEO Lisa Bryson.
UPDATE: Grocery Outlet finalized the acquisition of United Grocery Outlet on April 2.
In addition to the newly acquired stores, Grocery Outlet plans to open 15 to 20 stores in current markets in 2024, for a total of 55 to 60 new stores this year.
BofA Securities acted as exclusive financial advisor and Honigman LLP and Gould & Ratner LLP acted as legal advisors to Grocery Outlet. Stout acted as financial advisor and Bass, Berry & Sims PLC acted as legal advisor to Gen Cap and United Grocery Outlet.
About Grocery Outlet
Based in Emeryville, California, Grocery Outlet is an extreme value retailer of quality, name-brand consumables and fresh products sold through a network of independently-operated stores. It has more than 460 stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada, Maryland, New Jersey and Ohio.
About United Grocery Outlet
Based in Tennessee, United Grocery Outlet is a closeout grocery retailer with 40 stores in Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia.
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