Grupo Comercial Chedraui, the third largest retailer in Mexico, is expanding its footprint in the U.S. grocery space.
Bodega Latina Corp., the US subsidiary of Chedraui, has entered into an agreement to acquire Smart & Final Holdings from private equity firm Apollo Global Management for approximately $620M, including the assumption of certain debt. Apollo had acquired Smart Final in 2019, for about $1.2bn, including debt.
Smart & Final, which is celebrating its 150th anniversary this year, operates 254 grocery warehouse and food service stores, with 56 under its namesake banner and 198 under the Smart & Final Extra! banner, throughout California, Arizona and Nevada. (It has an additional 16 stores in Northwestern Mexico operated through a joint venture.) The company had revenues of approximately $4.1bn in 2021, with about 70 per cent of sales from regular customers and 30 per cent from business customers.
“The transaction is a testament to the strength of Smart & Final’s franchise, the quality of our store banners and the talent and expertise that support the business,” said David Herz, who is expected to continue to lead the company as CEO. “Under the ownership of Grupo Comercial Chedraui and Bodega Latina, Smart & Final will benefit from their guidance given their recognized and established position in the food retail space while contributing our own best practices and experience. Together we will further accelerate our collective growth.”