Grocery Outlet said to Explore Potential Billion Dollar Sale
BERKELEY, CA - Could discount retailer Grocery Outlet be the next company betting on an acquisition deal? Sources close to Reuters suggest that Grocery Outlet is exploring a sale that is expected to value the company at more than $1 billion.
People familiar with the matter indicate that Berkshire Partners LLC, Grocery Outlet’s private-equity owner, has hired Barclays and Goldman Sachs to run a sales process for the supermarket chain, according to Reuters. Spokespersons for Grocery Outlet and Goldman Sachs did not respond to requests for comment. Both Barclays and Berkshire Partners have declined to comment as well. No other information regarding the potential sale is available at this time.
Reuters also reports that Grocery Outlet has about $100 million in earnings before interest, tax, depreciation, and amortization, and could sell for more than 10 times that figure.
Grocery Outlet offers a full line of grocery items, including fresh produce, frozen, deli and refrigerated, fresh meat, general merchandise, health and beauty, and beer and wine. There are currently more than 200 independently operated Grocery Outlet stores in Arizona, California, Idaho, Nevada, Oregon, Pennsylvania, and Washington.
Stay tuned to AndNowUKnow as we keep an eye out for any potential buyers.