[Smart & Final] – Smart & Final Stores Inc. announced Monday that its subsidiary, Smart & Final Stores LLC, has entered into an agreement to acquire 28 store leases and related assets from affiliates of Haggen Holdings LLC for a cash purchase price of $56 million, subject to certain adjustments. The company has agreed to be a “stalking horse bidder” in a court-supervised sale of certain of Haggen’s assets, and will be entitled to certain break-up fees and expense reimbursement should an alternate higher bid ultimately be approved.
If the company is approved as the successful bidder in the auction for Haggen’s assets, the transaction is expected to close during the company’s fiscal fourth quarter 2015, subject to bankruptcy court and other customary approvals.
If completed, the transaction will result in Smart & Final assuming the leases and acquiring certain associated assets of 27 closed stores in central and Southern California and one closed store in Las Vegas, Nevada, which most recently have been operated as “Haggen” banner stores. The company plans to convert these stores to its Smart & Final Extra! store format, including investment in store fixtures and equipment, decor and signage and infrastructure upgrades. The Company intends to fund the Transaction and related investment from existing cash and availability under credit facilities.
The timing of the conversion process will vary on a store by store basis and is expected to start during the Company’s fiscal fourth quarter of 2015 and to be completed during the Company’s second quarter of 2016. The newly converted Extra! stores will reflect Smart & Final’s distinctive operational footprint and store layout as well as unique, high-quality merchandise offering tailored to both household and business customers.
Smart & Final currently operates 270 stores under the Smart & Final and Cash & Carry store banners. If completed, the Transaction would expand Smart & Final’s footprint in the California and Nevada markets and build upon its history of delivering quality products with exceptional value and shopping convenience to customers in the neighborhoods they serve.
About Smart & Final
Smart & Final Stores Inc. is a value and quality-oriented food and everyday staples retailer that serves household and business customers. The Company is headquartered in Commerce (near Los Angeles),California, where it was founded over 140 years ago. As of October 4, 2015, the Company operated 270 grocery and foodservice stores under the “Smart & Final”, “Smart & Final Extra!” and “Cash & Carry Smart Foodservice” banners in California, Oregon, Washington, Arizona, Nevada, and Idaho, with an additional 16 stores in northern Mexico operated through a joint venture.
Gelson’s Bids on 8 Haggen SoCal Properties
[Gelson’s] – Gelson’s Markets, one of the nation’s premier supermarket chains, will bid on eight properties in Southern California, it was announced today by Gelson’s President & CEORob McDougall. The offer was made this week to Haggen, a Washington-based chain of grocery stores. Haggen Holdings, LLC, together with certain of its subsidiaries, is currently a chapter 11 debtor in the United States Bankruptcy Court for the District of Delaware.
Gelson’s is bidding on eight Haggen locations across five counties: Los Angeles County (Santa Monica),Orange County (Laguna Beach, Ladera Ranch), Riverside County (Rancho Mirage), San Diego County(Carlsbad, Del Mar, Pacific Beach) and Ventura County (Thousand Oaks).
“We are excited at the prospect of significantly expanding our brand offerings to new communities,” said McDougall. “Our bid is subject to higher and better offers at an auction currently scheduled for the beginning of November. Should our bid prove successful, it will be a benefit for thousands of shoppers who value quality products and exceptional service. Furthermore, we would welcome the opportunity to have Haggen store employees join the Gelson’s family, and foresee growth opportunities for our associates.”
Founded in 1951, Gelson’s currently operates 18 full-service specialty grocery stores in Southern California. For more information about Gelson’s Markets, please visit www.gelsons.com.
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14 Comments
Chris Rivera
I work for Smart and Final :)
Good I like S &F
Seems like a great deal…
Mike Michael Johnson
Thanks James Jennings. Keep me posted.
http://couponsinthenews.com/2015/10/04/bidders-come-forward-for-haggens-closing-stores/
Here are the stores, no Valencia.
I think this was part of the bigger plan
How do we petition to get a grocery store in the old haggens?. I think stater bros would work well there.
A worker from Von’s in Sylmar said stater brother is look no to expand in one of those two areas.
Kim Lohman
Would love to see a Gelson’s Supermarket come to the SCV
So disappointed that GELSONS isn’t coming to Santa Clarita!!! So I guess I will still be shopping at their valley store three times a week on my way home!!
Just a little FYI… I think a Chinese firm owns Gelson’s. I think they bought the chain a few years ago.