The supermarket chain Chedraui has bought 254 U.S. warehouse stores located across California, Arizona and Nevada.
The US $620-million transaction sees Chedraui, through its U.S. subsidiary Bodega Latina, take over the Smart & Final brand from private equity firm Apollo Global Management, which had acquired the company for around $1.2 billion in 2019.
Smart & Final had revenues of approximately $4.1 billion last year, and has 198 stores under the Smart & Final Extra! banner and 56 Smart & Final stores.
Chedraui opened its first supermarket in 1971 in Xalapa, Veracruz, having been founded as a clothing store 44 years earlier by Lebanese immigrants. It operates more than 200 stores in central and southern Mexico and is the third largest retailer after Walmart and Soriana.
Chedraui first entered the US in 1997 with El Super supermarkets in California, Nevada, Arizona, New Mexico and Texas, and acquired the Fiesta Mart chain in Texas in 2018.
Smart & Final CEO David Herz spoke optimistically about joining Chedraui. “Under the ownership of Grupo Comercial Chedraui and Bodega Latina, Smart & Final will benefit from their guidance given their recognized and established position in the food retail space, while contributing our own best practices and experience. Together we will further accelerate our collective growth,” he said.
Source: Retail & Leisure International