Grocery Outlet Holding Corp. agreed to acquire United Grocery Outlet, an extreme value discount grocery retailer operating throughout the Southeastern United States, from affiliates of Gen Cap America, Inc. and current and former UGO management.
With 40 stores and a distribution center, the acquisition of United Grocery Outlet will expand Grocery Outlet’s presence into Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia.
RJ Sheedy, President and Chief Executive Officer of Grocery Outlet, stated, “United Grocery Outlet is a natural fit given our similar opportunistic buying strategies, customer value propositions, and shared mission of serving our communities. This acquisition provides Grocery Outlet with scale in a new region and a platform for future expansion in the Southeast. We are excited to welcome the United Grocery Outlet team into the GO family, and we look forward to working together on the many growth opportunities ahead.”
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United Grocery Outlet
Founded 50 years ago, UGO offers customers savings within a treasure hunt shopping environment. UGO maintains strong relationships with national and regional brands, which enables it to provide quality food at extreme values. “We are thrilled to become part of Grocery Outlet and to have found a partner who shares our mission and business strategy. Together, we look forward to growing the positive impact on our community,” said Lisa Bryson, CEO of United Grocery Outlet.
The acquisition will be completed in early Q2, subject to standard closing conditions. In addition to the newly acquired UGO stores, Grocery Outlet plans to open 15 to 20 stores in existing markets in 2024, for 55 to 60 net new stores this year. The acquisition is likely to increase the Company’s earnings in 2024. More details will be shared during the Q4 and full fiscal year 2023 earnings call on Tuesday, February 27, 2024.
Grocery Outlet, headquartered in Emeryville, California, is a rapidly expanding discount retailer selling quality name-brand consumables and fresh products through independently owned stores. Grocery Outlet has over 460 stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada, Maryland, New Jersey and Ohio.
UGO is a closeout grocery retailer with 40 stores in Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia.