Fiesta Mart Acquired by Bodega Latina Parent Grupo Comercial Chedraui
PARAMOUNT, CA - Mexican supermarket giant Grupo Comercial Chedraui—parent of U.S.-based Bodega Latina Corporation—has announced plans to acquire Texas Hispanic grocery chain Fiesta Mart—an acquisition that would create one of the largest Hispanic-focused supermarket companies in the U.S., operating a total of 122 stores across California, Arizona, Nevada, New Mexico, and Texas, and earning revenues of approximately $3 billion USD.
“The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well-known supermarket operator,” noted Carlos Smith, President and CEO of Bodega Latina, in a press release. “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. 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 merging companies noted, in a joint press release, that over 50 percent of the growing U.S. Hispanic population resides within the five states in which the company operates, and noted that the merger of these high-profile Hispanic supermarket chains would further enhance the customer shopping experience via improved pricing, quality, and customer service.
“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,” Sid Keswani, CEO of Fiesta Mart, said. “Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company.”
José Antonio Chedraui Eguía, CEO of Chedraui, also noted that the acquisition is a major step for Chedraui as the company looks to further expand its reach throughout the U.S.
“We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint,” said Chedraui Eguía. “Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”
The acquisition is expected to close early in the second quarter of 2018, and Fiesta stores are expected to continue to be operated under their own banner.
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