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Bodega Latina to acquire food retailer Fiesta Mart

Published 26 March 2018

Bodega Latina, doing business as El Super, a US Hispanic grocer and a subsidiary of Grupo Comercial Chedraui, has agreed to acquire Fiesta Mart for an undisclosed price.

Fiesta, a portfolio company of ACON Investments, L.L.C., is a Texas-based international food retailer with an emphasis on the Hispanic segment operating 63 stores primarily in the Dallas and Houston areas.

The combination of Bodega Latina and Fiesta creates one of the largest Hispanic-focused supermarket companies in the U.S., with a total of 122 stores across California, Arizona, Nevada, New Mexico, and Texas and revenues of approximately US$3 billion.

Over 50% of the fast growing U.S. Hispanic population resides within the five states in which the company operates.

The acquisition brings together best-in-class practices across both retailers to further enhance the customer shopping experience via improved pricing, quality and customer service.

Bodega Latina president and CEO Carlos Smith said: "The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well known supermarket operator. Through the combination of the strengths of our two organizations, we will be well positioned to significantly accelerate our vision of efficiently offering high quality products at the lowest possible prices.

“We believe this transaction will be beneficial for all of our stakeholders, including customers, suppliers, employees, and vendors. We look forward to welcoming Fiesta's talented employees and working together to create the premier Hispanic grocery retailer."

Chedraui CEO José Antonio Chedraui Eguía said: “We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint. Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”

Fiesta CEO Sid Keswani said: "Combining the strengths of Bodega Latina with those of Fiesta will accelerate the evolution and growth of Fiesta through combining the parties’ scale, geographic reach, talented teams, and market knowledge.

“Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company."

The transaction is currently expected to close at the beginning of the second quarter of 2018, subject to customary closing conditions. Fiesta stores will continue to be operated under their own banner.

RBC Capital Markets, L.L.C. served as exclusive financial advisor and Sidley Austin L.L.P. served as legal advisor to Bodega Latina, respectively.

The Food Partners, L.L.C. served as exclusive financial advisor and Hogan Lovells U.S. L.L.P. served as legal advisor to Fiesta, respectively.

Source: Company Press Release