El Super to buy Fiesta Mart

Bodega Latina Corp, which does business as “El Super,” has agreed to acquire Fiesta Mart LLC. ACON Investments LLC is the seller. Financial terms weren’t announced. Bodega Latina is a subsidiary of Grupo Comercial Chedraui SAB DE CV. Fiesta Mart, of Texas, is a food retailer with an emphasis on the Hispanic segment operating 63 stores primarily in the Dallas and Houston areas. RBC Capital Markets LLC provided financial advice while Sidley Austin served as legal adviser to Bodega Latina. The Food Partners LLC served as financial adviser and Hogan Lovells US LLP was the attorney to Fiesta.

PRESS RELEASE

PARAMOUNT, Calif.–(BUSINESS WIRE)–Bodega Latina Corporation (“Bodega Latina”), doing business as “El Super”, a leading U.S. Hispanic grocer and a subsidiary of Grupo Comercial Chedraui, S.A.B. DE C.V. (“Chedraui”), has agreed to acquire Fiesta Mart, L.L.C. (“Fiesta”). Fiesta, a portfolio company of ACON Investments, L.L.C., is a Texas-based international food retailer with an emphasis on the Hispanic segment operating 63 stores primarily in the Dallas and Houston areas.
The combination of Bodega Latina and Fiesta creates one of the largest Hispanic-focused supermarket companies in the U.S., with a total of 122 stores across California, Arizona, Nevada, New Mexico, and Texas and revenues of approximately US$3 billion. Over 50% of the fast growing U.S. Hispanic population resides within the five states in which the company operates. The acquisition brings together best-in-class practices across both retailers to further enhance the customer shopping experience via improved pricing, quality and customer service.
Carlos Smith, President and CEO of Bodega Latina, said, “The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well known supermarket operator. Through the combination of the strengths of our two organizations, we will be well positioned to significantly accelerate our vision of efficiently offering high quality products at the lowest possible prices. We believe this transaction will be beneficial for all of our stakeholders, including customers, suppliers, employees, and vendors. We look forward to welcoming Fiesta’s talented employees and working together to create the premier Hispanic grocery retailer.”
José Antonio Chedraui Eguía, CEO of Chedraui, said, “We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint. Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”
Sid Keswani, CEO of Fiesta, said, “Combining the strengths of Bodega Latina with those of Fiesta will accelerate the evolution and growth of Fiesta through combining the parties’ scale, geographic reach, talented teams, and market knowledge. Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company.”
The transaction is currently expected to close at the beginning of the second quarter of 2018, subject to customary closing conditions. Fiesta stores will continue to be operated under their own banner.
RBC Capital Markets, L.L.C. served as exclusive financial advisor and Sidley Austin L.L.P. served as legal advisor to Bodega Latina, respectively. The Food Partners, L.L.C. served as exclusive financial advisor and Hogan Lovells U.S. L.L.P. served as legal advisor to Fiesta, respectively.
About Bodega Latina Corporation
Bodega Latina Corporation, doing business as El Super, entered the grocery retail marketplace with its first store in South Gate, California in June of 1997. Headquartered in Paramount, California, El Super is focused on offering the communities it serves quality products at the lowest possible prices in clean, modern stores. El Super currently operates 59 stores in 13 counties throughout California, Arizona, Nevada, New Mexico and Texas. For additional information on Bodega Latina, please visit http://elsupermarkets.com/
About Grupo Comercial Chedraui, S.A.B. DE C.V.
Chedraui is a publicly owned company with variable capital created under the name GrupoComercialChedraui, S.A.B. de C.V., that operates hypermarkets and supermarkets in Mexico and the United States. GrupoComercialChedraui, S.A.B. de C.V. trades in the Mexican Stock Exchange under the ticker “CHDRAUI”. For additional information on Chedraui, please visit http://grupochedraui.com.mx/
About Fiesta Mart, L.L.C.
Fiesta Mart, L.L.C. is a Texas-based international food retailer with an emphasis on the Hispanic segment. Fiesta was co-founded by Donald Bonham and O.C. Mendenhall in Houston in 1972. Fiesta currently has 63 stores open in Houston (32 stores), Dallas-Fort Worth (29 stores), and Austin (2 stores), serving customers from over 100 countries of origin with a vast assortment of dry grocery and perishable products. Fiesta provides fresh quality meat, seafood, grocery, produce, dairy products, beer, and fine wines. Fiesta has been owned by ACON since April 2015. For additional information on Fiesta, please visit http://www.fiestamart.com/
About ACON Investments, L.L.C.
ACON Investments, L.L.C. is a Washington, DC-based international private equity investment firm that manages private equity funds and special purpose partnerships that make investments in the United States and Latin America. Founded in 1996, ACON has responsibility for managing approximately $5.5 billion of capital. ACON has professionals in Washington, DC, Los Angeles, Mexico City, São Paulo and Bogotá. Its portfolio firms employ approximately 43,000 globally. For additional information on ACON, please visit http://aconinvestments.com/