Grocery retail chain Albertsons has announced plans to invest in a Texas-based supermarket named, El Rancho Supermercado. The retailer focuses on stores for Latino customers, and will continue to operate as an independent company as part of the deal.
"El Rancho has built a great business with its 16 Texas stores, and we're confident that we'll be able to leverage our combined expertise to better serve customers across the existing Albertsons Companies' and El Rancho store bases," Bob Miller, chairman & CEO of Albertsons said. "With El Rancho's own distribution and manufacturing facilities serving their Texas stores, we can share best practices that will reduce costs and benefit our customers."
This investment will allow Albertsons to invest in the fast-growing Latino grocery sector, and together the two companies believe they will be able to leverage their strengths to better serve customers. The Idaho-based retailer already operates stores across 35 states under 20 well-known banners.
"The transaction announced today will allow El Rancho to accelerate growth and expand into new markets throughout Texas, while finding operational efficiencies in all aspects of our business. We are aligned with Albertsons Companies' vision for the future, strategic initiatives and culture of innovation. We are excited to work together with the Albertsons Companies' management team to continue to serve families in the rapidly-growing Latino market," Salah Nafal, president of El Rancho, said.
Peter J. Solomon served as financial advisor, Simpson Thacher & Bartlett served as legal advisor to El Rancho and Schulte Roth & Zabel served as legal advisor to Albertsons.