Arden Group Inc. said Wednesday that investment firm TPG had completed its acquisition of the company, which operates the Gelson’s Markets chain.

The purchase price for the Compton grocery company came to $394 million, with TPG in Fort Worth, Texas, paying $126.50 a share. Gelson’s, which itself is based in Encino, operates 17 upscale supermarkets around the Southland and competes with upscale chains such as Bristol Farms and Whole Foods.

Arden which announced the deal in December, had been considering strategic alternatives since last summer.

TPG has almost $55 billion in assets under management and its portfolio includes the Burger King and Daphne restaurant chains, and upscale retailers J. Crew and Neiman Marcus Group. It plans to expand the Gelson’s chain, with the first post-acquisition market to open in La Cañada Flintridge at the end of next month. Between five and 10 new stores are planned over the “medium- to long-range,” according to industry publication Supermarket News.

“With TPG’s retail experience and financial support, we are confident that we can profitably grow Gelson’s, and we are excited to embark on this new phase for the company,” Gelson’s Chief Executive Rob McDougall said in a statement.