The parent of U.S.-based Bodega Latina Corporation—Mexican supermarket giant Grupo Comercial Chedraui—has announced plans to acquire Texas-based Hispanic grocery chain Fiesta Mart. Between Fiesta and Bodega Latina's El Super banner, the acquisition would create one of the largest Hispanic-focused supermarket companies in the U.S., earning revenues of approximately $3 billion USD and operating a total of 122 stores across California, Arizona, Nevada, New Mexico, and Texas—five states that represent over 50 percent of the U.S.’s Latino population.
The acquisition is expected to close early in the second quarter of 2018—with Fiesta stores continuing to operate under their own banner.
“Combining the strengths of Bodega Latina with those of Fiesta will accelerate the evolution and growth of Fiesta through combining the parties’ scale, geographic reach, talented teams, and market knowledge,” Sid Keswani, CEO of Fiesta Mart, said. “Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company.”
The merging companies noted, in a joint press release, that the combination of these high-profile Hispanic supermarket chains would further enhance the customer shopping experience via improved pricing, quality, and customer service.
“The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well-known supermarket operator,” noted Carlos Smith, President and CEO of Bodega Latina, in a press release. “Through the combination of the strengths of our two organizations, we will be well positioned to significantly accelerate our vision of efficiently offering high quality products at the lowest possible prices. We believe this transaction will be beneficial for all of our stakeholders, including customers, suppliers, employees, and vendors. We look forward to welcoming Fiesta's talented employees and working together to create the premier Hispanic grocery retailer.”
José Antonio Chedraui Eguía, CEO of Grupo Comercial Chedraui, also noted that the acquisition is a major step for Grupo Comercial Chedraui as the company looks to further expand its reach in the U.S.
“We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint,” said Chedraui Eguía. “Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”
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