US: Albertson's snaps up United Supermarkets
By Katy Askew | 10 September 2013
Albertson's acquires United Supermarkets for undisclosed sum
US supermarket group Albertson's LLC has struck a deal to acquire family-owned Texan supermarket chain United Supermarkets.
The deal includes United Supermarkets' 50 supermarkets and three distribution centres in northern and western Texas. The outlets are operated under three banners: United Supermarkets, Market Street and Amigos. Albertson's will also take on seven convenience stores and 26 fuel centres operated under the United Express banner.
United Supermarkets will operate as a new business unit under Albertson's company structure. The company emphasised United Supermarkets will continue to operate "much as it does today", with decisions being made at a local level. Robert Taylor, current CEO of United Supermarkets, will take on the role of president of the unit, reporting directly to Bob Miller, CEO of Albertson's.
The acquisition - for an undisclosed sum - remains subject to regulatory approval. Albertson's, owned by private-equity firm Cerberus Capital Management, said in a statement that it expects to complete in October.
The move will strengthen Albertson's presence in Texas, where it operates 76 stores, the majority of which are in the Dallas-Fort Worth Metroplex.
Albertson’s LLC to Acquire United Supermarkets LLC
Acquisition includes 50 Stores, 3 Distribution Centers in North and West Texas
September 9, 2013 – Boise ID—Albertson’s LLC announced today that it intends to acquire United Supermarkets, LLC, DBA The United Family, (United), based in Lubbock, Texas. United operates 50 retail stores under 3 brands; United Supermarkets, Market Street and Amigos. Additionally, their United Express brand has 7 convenience stores and 26 fuel centers. United operates two divisions, RC Taylor which distributes tobacco, candy and general merchandise, and Praters which manufactures many different prepared foods including meats, side dishes and fresh tortillas; and one subsidiary, Llano Logistics which operates 2 distribution centers in Lubbock and Roanoke, Texas. Upon completion of the transaction, United will operate as a new business unit under Albertson’s LLC’s company structure. Robert Taylor, current CEO, will continue to lead United in his new capacity of president, reporting directly to Bob Miller, CEO of Albertson’s LLC.
“United has built an exemplary operation in Texas, complementary to our own go-to-market strategy in many respects,” explained Bob Miller, chief executive officer of Albertson’s LLC. “The family and leadership team have done a tremendous job in establishing and perpetuating a remarkable service culture and commitment to fresh, quality foods throughout their stores, even as they’ve grown. They’ve also developed strong community programs that have engaged team members and given back tremendously to their Texas communities, just as our Albertsons stores do every day. Our team feels there is an exceptional opportunity to invest in and grow their brands.”
The chain, which had been family-owned since 1916, will continue to operate much as it does today following the acquisition. United will continue to make decisions locally, similar to the other operating divisions in Albertson’s LLC. This transaction is expected to be complete by the end of October, subject to customary government approvals.
“United has an entrepreneurial spirit, just like Albertsons,” continued Miller. “We’ve learned over the last seven years that our decentralized operating strategy empowers local management to build stronger brands across diverse market areas. United has operated much the same way in their acquisitions of R.C. Taylor and Praters in 2007 and 2009, respectively. It’s a great fit between two great companies. United runs a fantastic operation, and will maintain its own unique identity.”
Said Robert Taylor, CEO of United, “United will continue to make decisions locally and maintain a strong commitment to our Texas communities, our guests and our team members. The opportunities presented to us to invest in our stores and grow with this transaction are tremendous.”
Currently, Albertson’s LLC operates 76 stores in Texas, the majority of which are in the Dallas-Fort Worth Metroplex, and has just over 600 stores company-wide. After the acquisition is complete, Albertson’s LLC will operate approximately 650 stores and 11 distribution centers in 16 states.
Sagent Advisors, LLC acted as exclusive financial advisor to United on the transaction. Citigroup acted as financial advisor to Albertson’s LLC.
About Albertson’s LLC
Albertsons is working to become the favorite food and drug retailer in every state in which it operates. An Idaho-based company with a rich history extending back to 1939, Albertsons stores now operate in 16 states at over 600 locations. For more information about Albertsons, visit www.albertsons.com or www.facebook.com/albertsons
Original source: Albertson's LLC
Companies: Albertson’s LLC
View next/previous articles
Currently reading -
US: Albertson's snaps up United Supermarkets
10 Sep 2013 -