Stop & Shop, a US-based supermarket chain of Ahold Delhaize, has agreed to purchase King Kullen Grocery for an undisclosed sum.
The acquisition is aimed at expanding its business on Long Island, New York.
The deal covers 32 supermarkets, five Wild by Nature stores and corporate office located in Bethpage, New York.
Stop & Shop president Mark McGowan said: “King Kullen is a well-respected grocery chain in the Long Island market that has an 88-year tradition of excellent customer service.
“We look forward to bringing our quality, selection and value to more communities in Nassau and Suffolk Counties.”
The transaction is subject to customary closing conditions and is expected to close during the first quarter of 2019.
Boutique investment banking firm The Food Partners served as the financial and strategic advisor to Stop & Shop.
For King Kullen, JP Morgan served as the financial and strategic advisor.
Commenting on the transaction, Ahold Delhaize CEO Frans Muller said: “This transaction underscores our commitment to further strengthen the positions of our great local brands in the US, both through organic growth and fill-in acquisitions.”
King Kullen Grocery also operates pharmacies with online refills, a fresh flower shop, a large deli, catering and prepared foods department, and a local bakery in every store. The company has also piloted online grocery shopping in four stores.
Stop & Shop currently operates more than 400 stores across Massachusetts, Connecticut, Rhode Island, New York and New Jersey. It employs over 61,000 associates across its stores.