Ukrop’s is again in the headlines for a possible sale. And like last time, it’s because a grocery industry website ran a blurb about a possible sale
Harris Teeter is supposedly out of the running to purchase Ukrop’s Super Markets, according to a report published yesterday by Supermarket News, a trade magazine for the food distribution industry.
The report states that Harris Teeter was outbid for the Richmond-based grocer by an unnamed private equity group that is now in "exclusive negotiations" to buy Ukrop’s. The report is based on anonymous sources.
Representatives from both Ukrop’s and Harris Teeter both indicated that they do not comment on rumors or speculation.
“Although Harris Teeter was considered a good strategic fit for Ukrop’s, deteriorating performance at the latter made valuations difficult, a source said. Delhaize Group ( Food Lion) and Ahold ( Giant ) were also said to be strategic suitors.”
Question is Where are the leaks? Or, put another way, who is breaching confidentiality?
Normally in a situation like this you don’t these types of rumors.
Typically, an investment bank would take a prospectus to several companies that might be a good fit, including other grocery stores and private equity groups that buy those sorts of retailers. They would not promote the fact that the company is for sale and circulate a prospectus.
And normally deals of this sort for a private company stay private until the companies involved issue a news release. The investment banks that help companies buy and sell one another have their reputation at stake, so it’s unlikely they’ve leaked the news.
No information has been discovered on which investment bank is working for Ukrop’s, or if the company has hired one.
Ukrop’s has 28 stores in Virginia, including one in Williamsburg VA . The grocer also for now owns about half of First Market Bank, but that’s being sold to Bowling Green-based Union Bankshares Corp. in a deal expected to close this fall.
Harris Teeter, a North Carolina-based grocer that is expanding in Northern Virginia, has announced plans to build a 500,000-square-foot distribution warehouse in King George County’s industrial park. The grocer signed an agreement with the county in January and was given three months to do a feasibility study. The company still hasn’t closed on the property and recently got its fourth extension.
Ruddick Corp., which is Harris Teeter’s parent company, recently indicated in a quarterly earnings report that the company is still studying alternatives to the site, and if it goes forward the timeline will be delayed beyond the originally stated 2012 completion.
Filed under: Grocery Stores, News, williamsburg va | Tagged: harris teeter, richmond va grocery, ukrops, williamsburg va | 1 Comment »
Mr Williamsburg, Revolutionary ideas on real estate!Hampton Roads Virginia 