Ahold plans expand its Giant-Carlisle division by buying 25 stores from Ukropâs Super Markets Inc.
The Amsterdam-based parent company of Ahold USA said in a statement the purchase price is about $140 million and includes inventory, equipment, lease agreements and one new store location of the Richmond, Va.-based chain.
Ukrop's associates also will be retained, according to the statement.
âThis acquisition is part of Aholdâs profitable growth strategy,â said John Rishton, Ahold chief executive officer, in a news release. âUkropâs is a great company with a strong heritage in an attractive market. We believe that Giant-Carlisle and Ukropâs will be a strong combination.â
Ahold expects to complete the transaction in the first quarter of 2010.
Ukropâs addressed the sale in a letter to customers.
It is uncertain whether Ukropâs stores will be rebranded to the Giant-Carlisle division, which has more than 150 stores in Pennsylvania, Virginia, Maryland and West Virginia under the Giant and Martinâs banners.
Ukropâs, a privately-held, family business started in 1937, had been considering sale for the past year, according to an article in the Richmond, Va., Times-Dispatch.
James Ukrop, former chairman and chief executive officer of the chain told the Times-Dispatch the family tried to compete outside of its core market with little success.
Two Ukropâs stores â in Richmondâs West End and in Fredericksburg â are not included in the deal.
Ahold said it plans to offer those employees positions at other locations.