Gelson’s Markets Acquired by Pan Pacific International Holdings
ENCINO, CA & TOKYO, JAPAN - A breeze of change is blowing through the retail sector, and with it comes news that popular California-based grocer Gelson’s Markets is being acquired. Pan Pacific International Holdings (PPIH), the operator of Japanese discount store chain Don Quijote, has revealed it is acquiring all shares of GRCY Holdings, the company that operates Gelson’s. The recent move comes as PPIH is looking to expand its operational footprint throughout the U.S.
Prior PPIH initiatives in North America have included effective use of mergers and acquisitions to build foundations and grow operations. For example, the company created its first overseas base for opening stores through the establishment of THE DAI’EI (USA), which is operating in Hawaii currently as Don Quijote (USA). In 2006, it acquired all shares in Oriental Seafoods; PPIH then acquired all shares in MARUKAI CORPORATION, which operates in Hawaii and California.
“We have set our footprint in the state of California when we acquired Marukai Corporation…and we look forward to expanding our presence in California,” said Naoki Yoshida, President and CEO of PPIH in a statement to Daily News.
According to the release, this transaction is slated to expand PPIH’s overseas sales to approximately ¥200 billion (approximately $1.89 billion USD). GRCY operates 27 Gelson’s stores, which generates net sales of $872 million (fiscal year ended December 31, 2020). The release did not disclose the amount of the acquisition.
As GRCY’s business area and the surrounding areas continue to experience ongoing population growth, a large portion of which is in communities with consumers seeking high-quality products, PPIH sees potential for continuous growth to be achieved by opening new stores and attracting new customers at existing stores, according to the statement.
Looking ahead, PPIH plans to accelerate growth through new store openings and through mergers and acquisitions in Asia and in other areas of overseas operations in order to drive medium- to long-term improvements in the company’s enterprise value.
How will this recent acquisition advance PPIH’s growth strategy in the U.S. retail market? Keep a tab open for AndNowUKnow as we continue to bring you the answers.