Bodega Latina Corp., a Paramount-based subsidiary of the Mexican company that owns the El Super grocery markets, has agreed to acquire Fiesta Mart of Texas to create one of the largest Latino super markets in the U.S., company officials announced Monday.
Bodega’s El Super markets added to Fiesta’s grocers will create 122 stores across California, Arizona, Nevada, New Mexico and Texas, with roughly $3 billion in combined revenue. The chain is owned by Mexican supermarket giant Grupo Comercial Chedraui.
Terms of the deal were not disclosed. The sale is expected to close this summer.
"The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well-known supermarket operator,” said Carlos Smith, chief executive of Bodega Latina, said in a statement.
The announcement of the Bodega-Fiesta merger comes as competition is ramping up within the U.S. supermarket industry, with disruption caused by Amazon.com Inc.’s $13 billion purchase of Whole Foods Market Inc. last June.
RBC Capital Markets served as exclusive financial advisor to Bodega Latina , with Sidley Austin serving as legal advisor. Food Partners served as exclusive financial advisor to Fiesta, with Hogan Lovells U.S. serving as legal advisor.
Bodega Latina, doing business as El Super, launched its first grocery store in 1997 in South Gate and now operates 59 markets in five states. Fiesta Mart, founded in Houston in 1972 and now owned by Acon Investments, operates 63 stores in Texas.
The publicly owned company founded as GrupoComercialChedraui, S.A.B. de C.V., operates in Mexico and the U.S.
Health business reporter Dana Bartholomew can be reached at firstname.lastname@example.org. Follow him on Twitter @_DanaBart.
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