By Delimarket.TV Staff
Harris Teeter Supermarkets has confirmed retention of J.P. Morgan as its financial advisor. J.P. Morgan Securities LLC will assist Harris Teeter in holding discussions with certain parties regarding strategic alternatives, according to a company press release. The company was approached by two private equity firms who expressed an interest in purchasing the company.
According to Reuters, both Kroger and Publix have come up as potential buyers eyeing Harris Teeter.
Facing increased competition from major chains and mass merchandisers like Costco and Target, regional supermarkets like Harris Teeter are struggling to maintain market share, which is leading to consolidation.
Kroger is keeping quiet about any potential interest in the chain. Harris Teeter operates roughly 200 stores along the east coast from Florida to Delaware. Kroger has over 2,400 stores in 31 states, but its presence in Florida, Maryland, and Delaware is conspicuously absent. Kroger only operates 16 stores in North Carolina, according to the Cincinnati Business Courier.
Kroger just increased its shelf registration to issue stocks and bonds by $1.8 billion, meaning it’s registered to sell up to $2.5 billion in securities. That could pave the way for a sizable acquisition.
