Last updated on March 30th, 2018 at 01:30 pm
Bodega Latina Corp., doing business as El Super, a U.S. Hispanic grocer and a subsidiary of Grupo Comercial Chedraui, S.A.B. DE C.V., has agreed to acquire Fiesta Mart LLC. Fiesta, a portfolio company of ACON Investments LL, is a Texas-based international food retailer with an emphasis on the Hispanic segment, operating 63 stores primarily in the Dallas and Houston areas.
The combination of Bodega Latina and Fiesta will create one of the largest Hispanic-focused supermarket companies in the U.S., with a total of 122 stores across California, Arizona, Nevada, New Mexico and Texas and revenues of approximately $3 billion. More than half of the fast-growing U.S. Hispanic population resides within the five states in which the combined company will operate.
“The acquisition brings together best-in-class practices across both retailers to further enhance the customer shopping experience via improved pricing, quality and customer service,” the companies said in a statement.
Carlos Smith, president and CEO of Bodega Latina, said, “The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well-known supermarket operator. 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.”
“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, said, “Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company.”
José Antonio Chedraui Eguía, CEO of Chedraui, added, “We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint. Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”
The transaction is expected to close at the beginning of the second quarter of 2018, subject to customary closing conditions. Fiesta stores will continue to be operated under their own banner.
Bodega Latina entered the grocery retail marketplace with its first El Super store in South Gate, California in 1997. Headquartered in Paramount, California, El Super operates 59 stores in 13 counties throughout California, Arizona, Nevada, New Mexico and Texas.
Texas-based Fiesta Mart was co-founded by Donald Bonham and O.C. Mendenhall in Houston in 1972. Fiesta has 63 stores open in Houston (32 stores), Dallas-Fort Worth (29 stores) and Austin (2 stores), serving customers from more than 100 countries of origin with an assortment of dry grocery and perishable products, including fresh meat, seafood, grocery, produce, dairy products, beer and wines.