Wednesday, August 19, 2009
Private equity group in talks to buy Ukrop's
A trade publication reported that the group outbid Harris Teeter in negotiations to buy the Richmond-based grocer.
The latest from The Ticker blog
Related
Your take
Previous coverage
A North Carolina-based grocer no longer is in the running to acquire Ukrop's Super Market, though the Richmond food company reportedly is negotiating with a private group for a sale.
A New York grocery trade publication, Supermarket News, reported Tuesday that a private equity group outbid Harris Teeter in negotiations to acquire the 28-store Ukrop's chain. Citing unnamed sources, Supermarket News said on its Web site that the unnamed equity group remains in exclusive negotiations with Ukrop's.
Last month, another trade publication, Food World, reported that Ukrop's was seeking a buyer, and several grocery companies had responded to a prospectus issued by the Richmond chain. Food World reported that Ahold, Harris Teeter and SuperValu responded.
Grocery experts have said Harris Teeter was a good match for Ukrop's because it has a similar market position. An unnamed source cited in the Supermarket News story said deteriorating performance at Harris Teeter made for difficult valuation.
Ukrop's officials and a Harris Teeter spokeswoman, Jennifer Thompson, did not return calls for comment Tuesday about the latest report.
The family-owned Ukrop's chain, which has one Roanoke store, has not confirmed that the company is for sale.
It's unclear how a potential sale of Ukrop's would affect the grocer's Roanoke store, which opened in 2007 on Franklin Road. In the past year, Ukrop's officials publicly disclosed their struggles drawing shoppers and sales to the 58,000-square-foot supermarket. Ukrop's stores are closed on Sundays and do not sell alcohol.
A new Walgreens drugstore opened last week adjacent to Ukrop's at the Ivy Market retail center.
