US-based grocery chain Bodega Latina has agreed to acquire food retailer Fiesta Mart.
The financial details of the deal were not disclosed.
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Bodega, a subsidiary of Grupo Comercial Chedraui, operates the business under El Super brand whereas Texas-based Fiesta is a portfolio company of ACON Investments.
After the completion of the deal, the retail base of both of the companies will increase to 122 stores across California, Arizona, Nevada, New Mexico, and Texas with revenues of approximately $3bn.
Bodega Latina’s president and CEO Carlos Smith said: The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well known supermarket operator.
“Through the combination of the strengths of our two organizations, we will be well positioned to significantly accelerate our vision of efficiently offering high quality products at the lowest possible prices.
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By GlobalData“We believe this transaction will be beneficial for all of our stakeholders, including customers, suppliers, employees, and vendors. We look forward to welcoming Fiesta’s talented employees and working together to create the premier Hispanic grocery retailer.”
The acquisition is expected to complete during the early second quarter of 2018. Post-transaction, Bodega will continue to operate Fiesta stores under their own brand.
Chedraui CEO José Antonio Chedraui Eguía said: “We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint. Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”
Fiesta CEO Sid Keswani said: “Combining the strengths of Bodega Latina with those of Fiesta will accelerate the evolution and growth of Fiesta through combining the parties’ scale, geographic reach, talented teams, and market knowledge. Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company.”
Headquartered in Paramount, California, Bodega currently operates 59 stores in 13 counties throughout California, Arizona, Nevada, New Mexico and Texas.
Fiesta operates 63 stores with a focus on the Hispanic market in Dallas, Houston and Austin.
