Deal to create big Hispanic-focused supermarket operator
PARAMOUNT, Calif. — Bodega Latina Corp. announced on Sunday that it has agreed to acquire Fiesta Mart, operator of 63 food stores catering to Latino shoppers in the Dallas and Houston markets.
Bodega Latina, doing business as El Super, serves customers with 59 stores in California, Arizona, Nevada, New Mexico and Texas. It is a subsidiary of Grupo Comercial Chedraui S.A.B., one of Mexico’s leading retailers.
Once the deal closes, the combined company will be one of the nation’s largest Hispanic-focused supermarket companies, with about $3 billion in annual revenues, Latina Bodega said in a statement. “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 chief executive officer 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.”
The Fiesta stores will continue to operate under its own banner once the deal closes, presumably at the beginning of the second quarter, subject to customary closing conditions, Bodega Latina 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,” said Fiesta CEO Sid Keswani.
Since 2015, Fiesta has been owned by private equity firm Acon Investments, whose funds are invested in companies in a variety of industries in the United States and Latin America.
“We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint,” said José Antonio Chedraui Eguía, CEO of Chedraui.