Pan Pacific International Holdings Corporation (PPIH), the operator of well-known Japanese discount store chain Don Quijote, is jumping over the Pacific Ocean and is branching out in the States. Recently, Pan Pacific announced it is acquiring all the shares of GRCY Holdings, the holding company that operates California-based Gelson’s Markets.
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.
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.
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, as well as in other areas of overseas operations in order to drive medium- to long-term improvements in the company’s enterprise value.
As the retail landscape continues to change, keep checking back to Deli Market News as we report on the latest.
