Mergers that Shook Retailing in '09, Ukrop's Joins the List

12/22/2009
Giant-owner Royal Ahold acquires Virginia-based supermarket chain in a deal for $140 million. The deal is expected to close during the first quarter of 2010. The acquisition of Ukrop's Super Markets, includes the family owned grocer's 25 locations as well as its inventory, equipment and lease agreements.

Under the terms of the deal, the 72-year-old chain will be owned by the Giant-Carlisle division. That unit also operates stores in Maryland, Pennsylvania and West Virginia. Giant-Carlisle operates more than 150 stores in the Mid-Atlantic region, including some that operate under the Martin's brand name.

"This acquisition is part of Ahold's profitable growth strategy," said John Rishton, Ahold CEO.
Ukrop said the stores will continue to operate under the same name for the short term. Not included in the deal are the Fredericksburg store and the Joe's Market owned by Ukrop's located in Richmond, VA. Those stores will eventually be closed.

The grocery store posted $1.4 million loss in the third quarter of this year, reporting a total income of $140 million. The company's total assets as of September 30, 2009 were listed as $233 million, with liabilities of $145.9 million.

Other major mergers that shook retailing in 2009 include:

Dress Barn/Tween Brands
Dress Barn announced it would purchase Tween Brands, operator of 908 Justice stores, on June 25, 2009 for a $157 million.

Syms/Filene's
Discount retailer Syms and Vornado Realty Trust won the bid for bankrupt Filene's Basement on June 15, 2009.

Toys "R" Us/FAO Schwarz
The largest U.S. toy-store chain announced it would acquire FAO Schwarz on May 28, 2009.

Weis Markets/Giant Markets
Weis Markets announced it would acquire Binghamton, New York-based Giant Markets on May 21, 2009.

Walgreen/Drug Fair
Walgreen completed the acquisition of 31 Drug Fair stores on May 11, 2009.
X
This ad will auto-close in 10 seconds