An affiliate of Ron Burkle’s Yucaipa Cos. announced Tuesday that it had agreed to purchase the Fresh & Easy chain from British supermarket firm Tesco.
“The decision we are announcing today represents the best outcome for Tesco shareholders and Fresh & Easy’s stakeholders. It offers us an orderly and efficient exit from the U.S. market, while protecting the jobs of more than 4,000 colleagues at Fresh & Easy,” Philip Clarke, Tesco’s chief executive, said in a statement.
Burkle, managing partner of Yucaipa Cos., said in a statement he hoped to complete Tesco’s vision for Fresh & Easy’s 220 stores and add some improvements as well.
“We plan on continuing to build Fresh & Easy into a ‘next generation convenience retail experience,’ providing busy consumers with more local and healthy access for their daily needs,” he said.
Terms were not disclosed, but the New York Times reported that Tesco was expected to lend the acquiring entity $126 million. Yucaipa, which invests primarily supermarkets and grocery chains, is expected to complete the purchase within three months.
For reprint and licensing requests for this article, CLICK HERE.