Giant-Carlisle agrees to acquire Ukrop's stores
RICHMOND, VA (WWBT) - Royal Ahold announced that Giant-Carlisle, a Division of Ahold USA, will expand its presence in Virginia by acquiring Richmond-based Ukrop's Super Markets Inc. for approximately $140 million.
"Today Ukrop's is announcing that we are leaving the retail grocery business," said Bobby Ukrop during the press conference this afternoon at the Sheraton West Richmond Hotel.
Royal Ahold, a Dutch company called that owns Giant-Carlisle and Giant Foods, had been mentioned as a potential buyer and has stores in Virginia.
The stores will carry the Ukrop's name for an undetermined time until the transition is complete, said Rick Herring, Division President, Giant-Carlisle. The plans haven't been announced, but the stores could eventually be open on Sundays and -- after the transition to the Giant name -- also sell alcohol.
"While the retail business will no longer exist, there will be Ukrop's still involved in the food business," Ukrop said, announcing that he will be the CEO of a new enterprise of Ukrop's kitchen and bakery products & goods to be sold in the Giant Foods stores.
"The First Market [Bank] branches will remain in the stores and operate as usual, just as the other departments," Bobby Ukrop said.
Joe's Market and the Fredericksburg Ukrop's are not part of the transaction and Ukrop said the company will be working with the associates from those stores.
The official press release from Ahold:
Ahold today announced that Giant-Carlisle, a Division of Ahold USA, will expand its presence in Virginia by acquiring 25 stores from Ukrop's Super Markets, Inc. Ukrop's is a family-owned business based in Richmond, Virginia. The transaction includes 25 stores, inventory, equipment, lease agreements and one new store location. Furthermore, Giant-Carlisle will hire Ukrop's store associates. The purchase price is approximately $140 million.
John Rishton, CEO of Ahold, said, "This acquisition is part of Ahold's profitable growth strategy. Ukrop's is a great company with a strong heritage in an attractive market. We believe that Giant-Carlisle and Ukrop's will be a strong combination."
The closing of the transaction is expected to take place in the first quarter of 2010 and is subject to customary conditions.
About Giant-Carlisle: Giant-Carlisle, a division of Ahold USA, operates more than 150 stores in Pennsylvania, Virginia, Maryland and West Virginia under the names of GIANT and MARTIN'S. These stores compete as market leaders and are among the best known retail brands in the communities they serve. Giant-Carlisle employs more than 26,000 full and part-time associates.
NBC12's Rachel DePompa is working on this breaking story and will have more on NBC 12 News tonight.
Please feel free to add your memories of Ukrop's and what the store has meant to you. NBC12 may air some of the comments in later broadcasts.
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