C&S Wholesale Grocers expands into retail with $1.9 billion buy of 413 shops and eight DCs

Wholesale grocery provider C&S Wholesale Grocers LLC at present mentioned it should spend $1.9 billion to buy 413 shops, eight distribution facilities, and two workplaces which have change into obtainable as a consequence of the merger between The Kroger Co. and Albertsons Corporations Inc.

C&S mentioned the transfer will assist it increase into the retail market, leveraging its current operations in widespread meals provide chains. The corporate already provides greater than 7,500 impartial supermarkets, chain shops, navy bases, and establishments with over 100,000 completely different merchandise.

The deal comes as Kroger sheds sure areas in an effort to win regulatory approval for a $24.6 billion merger with fellow grocery big Albertsons, initially introduced in 2022. As a part of the settlement, Kroger mentioned it might additionally “require C&S to buy as much as an extra 237 shops” at an added value.

Keene, New Hampshire-based C&S mentioned the present settlement is about to shut in early 2024, topic to regulatory clearance and customary closing situations. The corporate will proceed to acknowledge the union workforce and preserve all collective bargaining agreements, and is dedicated to retaining frontline workers and additional investing for progress, the corporate mentioned.

As a part of the deal, C&S will purchase the QFC, Mariano’s, and Carrs model names and the unique licensing rights to the Albertsons model title in Arizona, California, Colorado, and Wyoming. C&S will even add 5 personal labels to their present model portfolio. Its affiliate 1918 Winter Avenue Companions will function these shops.

“That is one other thrilling alternative for C&S to increase into the retail market, which is a vital part of our long-term progress. We have a powerful basis of retail expertise with our Piggly Wiggly franchise and corporate-owned shops within the Midwest and Carolinas and the reopening of our iconic Grand Union — totaling extra than 160 retail areas — all of which display C&S’s potential to ship strong retail efficiency,” Eric Winn, COO and designated CEO (efficient October 2) of C&S Wholesale Grocers, mentioned in a launch. “This will even additional improve C&S’s potential to serve our prospects as we might be in a novel place as a main wholesale provider and retailer to assist develop their enterprise and proceed our legacy of braggingly blissful prospects.”