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Giant-Carlisle to acquire Ukrop's |
01.08.2010
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RICHMOND, Va.-Supermarket giant Ahold will expand its Giant-Carlisle division by acquiring 25 stores from Ukrop's Super Markets, Inc. for around $140 million. The deal is expected to close in the first quarter.
The transaction includes the 25 stores, inventory, equipment, lease agreements and one new store location, according to an Ahold news release. Giant-Carlisle also plans to hire Ukrop's sales associates.
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Family-owned Ukrop's, based here, currently operates 27 stores. Two Ukrop's stores-in Richmond's West End and in Fredericksburg-are not part of the deal. Ahold said it plans to offer those employees positions at other locations.
Gourmet News was unable to reach a spokesperson for the supermarkets before press time.
Ukrop's addressed the sale in a letter to customers on Dec. 17.
"We envision there will be minimal changes at Giant/Martin's as it embraces the uniqueness of the Ukrop's experience. The visible difference you will see is that pricing on products such as canned, frozen, and other packaged goods will be supported by the purchasing power of a very competitive, global company," the letter stated.
Giant-Carlisle operates 152 stores in Pennsylvania, Maryland, Virginia and West Virginia, including the well-known Giant group and its sister retailer Martin's Food Markets.
Ukrop's, which was founded in 1937, was known for its more traditional supermarket concept-their stores are closed Sundays and do not sell alcohol.
"During the last decade, we have witness this business undergo a radical transformation," the letter stated. "Today, consumers have many retail options for their grocery purchases beyond that of a traditional store. As a result, we have come to the conclusion that competing effectively in this challenging environment now requires the resources and the scale of a much larger organization."
"This acquisition is part of Ahold's profitable growth strategy," said John Rishton, CEO, in a statement. "Ukrop's is a great company with a strong heritage in an attractive market. We believe that Giant-Carlisle and Ukrop's will be a strong combination."
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