Last updated on October 6th, 2017 at 02:14 pm
The collective owners of CNG Ranch LLC, including managing partner Northgate Gonzalez Market, have reached an agreement that allows Cardenas Markets to acquire the seven Los Altos Ranch Market stores in Arizona. The sale is expected to close within 45 days pending final approvals.
“Acquisitions and new strategic store locations are a key component of our growth strategy,” said John Gomez, president and CEO of Cardenas Markets. “We are fortunate to have identified Los Altos Ranch Market as a partner whose values and mission are aligned with our organization. We welcome the employees of Los Altos Ranch Market into the Cardenas Markets family and look forward to the many opportunities of growth resulting from this partnership.”
With this acquisition, the company will expand its footprint into the Arizona market, bringing its total number of stores to 53. During the transition period, no immediate changes are expected to the operations of Los Altos Ranch Market stores. The group of stores will gradually be integrated into Cardenas’ operations while “continuing to offer the best shopping experience to the communities they serve,” the company says.
“We at Northgate Gonzalez Market believe this move will be a very positive one for our business—as we will now turn 100 percent of our attention to the Southern California Market, where the opportunities for continued growth are high, and we can expand our proven strategies within both our current and future stores,” said Miguel Gonzalez Reynoso, co-president of Northgate. “We believe Cardenas Markets is a good home for these stores, and we wish them well in their future.
During a transition period, Northgate will continue to provide key operational support services to the new Los Altos ownership through a Transitional Services Agreement.
CNG Ranch ownership was assisted in the transaction by the investment banking firm of William Blair & Co. and the law firm of Brown & Streza LLP.
Cardenas Markets is headquartered in Ontario, California and has been in operation since 1981. Cardenas operates store locations in California, Nevada and now Arizona.
Northgate Gonzalez Market is a Southern California supermarket chain that caters to the Latino community. Family-owned and -operated and headquartered in Anaheim, Northgate operates 40 stores in Orange, Los Angeles and San Diego counties.