Boise, ID /PRNewswire/ - Albertsons Companies, one of the nation's largest grocery retailers, today announced an investment in El Rancho Supermercado, a Texas-based retailer which focuses on stores for Latino customers. El Rancho will continue to operate as an independent company headquartered in Garland, TX.
"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," said Bob Miller, Chairman & CEO of Albertsons Companies. "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."
The agreement with El Rancho provides Albertsons Companies an opportunity to invest in the fast-growing Latino grocery sector. The company already successfully operates a variety of store banners in predominantly Latino areas, and together, Albertsons Companies and El Rancho can leverage their complementary strengths to better serve customers in this growing sector.
"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," said Salah Nafal, President of El Rancho.
Peter J. Solomon Company served as financial advisor, and Simpson Thacher & Bartlett served as legal advisor to El Rancho, respectively, and Schulte Roth & Zabel served as legal advisor to Albertsons.
About Albertsons Companies
Albertsons Companies is one of the largest food and drug retailers in the United States, with both a strong local presence and national scale. We operate stores across 35 states and the District of Columbia under 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal kit company Plated based in New York City. Albertsons Companies is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2016 alone, along with the Albertsons Companies Foundation, the company gave nearly $300 million in food and financial support. These efforts helped millions of people in the areas of hunger relief, education, cancer research and treatment, programs for people with disabilities and veterans outreach.
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