Bodega Latina Corporation, operating as El Super in the United States, has announced its decision to acquire Fiesta Mart in a deal worth USD 300 million. The strategic move is likely to help both the firms in sustaining the competition witnessed across the expanding retail sector. The acquisition, in all plausibility, will make Chedraui, the Mexican parent company of Bodega, one of the biggest Hispanic grocery stores in the U.S. Incidentally, during the second quarter of this year, both the firms are likely to obtain the ownership of 63 Lone Star State stores that also include 32 in the Houston area.
Carlos Smith, the CEO of Bodega, has stated that the acquisition will help the firm in expanding its food retail business across Texas. The firm is already operating nearly 59 retail stores under the EI Super brand name in the southwest region of the U.S. Through this buyout, it would be able to reposition its brand across the retail sector and would also be able to offer high quality, superior brands at the lowest prices.
Analysts are of the view that Bodega Latina Corporation will now renovate the retail stores of Fiesta for targeting an altogether new customer base. The firm is projected to use its broad procurement strategy to purchase food items at reasonable prices and pass them on to the customers. For the record, this acquisition is the latest change in Fiesta Mart’s ownership since the last decade. In 2004, Grocers Supply made an acquisition offer for Fiesta while in 2015, Acon Investments had taken over Grocers Supply.
Reports speculate that after the finalization of its purchase agreement with Fiesta, Bodega Latina Corporation will possess a total of 122 retail stores in the southwestern region of the U.S. It is also likely to accrue a revenue worth USD 3 billion post acquisition.