Bodega Latina Corp., a subsidiary of Grupo Comercial Chedraui, S.A.B. de C.V., is acquiring Smart & Final Holdings for approximately $620 million.
Headquartered in Commerce, Califorinia, Smart & Final operates more than 250 stores under two banners: Smart & Final and Smart & Final Extra!, in California, Arizona, and Nevada. There are an additional 16 stores in Northwestern Mexico operated through a joint venture.
“We are excited about the combination of Grupo Comercial Chedraui and Bodega Latina with Smart & Final, which further scales and expands our U.S. footprint,” said José Antonio Chedraui Eguía, CEO of Chedraui, in a statement. “This transaction reflects our continued commitment to serve customers, families and businesses in both the U.S. and Mexico. It benefits stakeholders in both countries, including our employees, around 40,000 in Mexico and over 13,000 in the U.S., suppliers, vendors, customers, and their families.”
Smart & Final will retain its existing management team to continue to operate the business.
“The transaction is a testament to the strength of Smart & Final’s franchise, the quality of our store banners, and the talent and expertise that support the business,” said David Hirz, Smart & Final’s CEO, in a statement. “Under the ownership of Grupo Comercial Chedraui and Bodega Latina, Smart & Final will benefit from their guidance given their recognized and established position in the food retail space while contributing our own best practices and experience. Together we will further accelerate our collective growth.”
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Image: Smart & Final