🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Grocery Outlet to acquire United Grocery Outlet

Published 16/02/2024, 11:34 am
© Reuters.
GO
-

EMERYVILLE, Calif. - Grocery Outlet Holding Corp. (NASDAQ: NASDAQ:GO) announced its agreement to acquire United Grocery Outlet, a discount grocery retailer operating in the Southeastern U.S., from affiliates of Gen Cap America, Inc. and UGO management. The deal, expected to close early in the second quarter, will introduce Grocery Outlet into six new states: Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia, adding 40 stores and a distribution center to its network.

RJ Sheedy, President and CEO of Grocery Outlet, highlighted the compatibility of the two companies, citing their similar buying strategies and commitment to community service. Lisa Bryson, CEO of United Grocery Outlet, also expressed enthusiasm about joining forces with Grocery Outlet to expand their community impact.

The acquisition is part of Grocery Outlet's growth strategy, which includes opening an additional 15 to 20 stores within its existing markets in 2024. This expansion is projected to result in 55 to 60 net new stores for the year. The company anticipates that the acquisition will have a modest positive impact on its 2024 earnings.

Financial details of the transaction will be further discussed during Grocery Outlet's earnings call on Tuesday, February 27, 2024. BofA Securities served as the exclusive financial advisor, with Honigman LLP and Gould & Ratner LLP as legal advisors to Grocery Outlet. Stout provided financial advice, and Bass, Berry & Sims PLC offered legal counsel to Gen Cap and United Grocery Outlet for the transaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.