Add-on Acquisition • Retail

Grocery Outlet Acquires United Grocery Outlet

On February 15, 2024, Grocery Outlet acquired retailer United Grocery Outlet from Gen Cap America

Acquisition Context
  • This is Grocery Outlet’s 1st transaction in the Retail sector.
  • This is Grocery Outlet’s 1st transaction in the United States.
  • This is Grocery Outlet’s 1st transaction in Tennessee.

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M&A Deal Summary

Date February 15, 2024
Target United Grocery Outlet
Sector Retail
Buyer(s) Grocery Outlet
Sellers(s) Gen Cap America
Deal Type Add-on Acquisition
Advisor(s) Stout (Financial)

Target Company

United Grocery Outlet

Athens, Tennessee, United States
United Grocery Outlet operates 37 retail locations across Tennessee, North Carolina, Georgia, Kentucky, and Alabama. It specializes in liquidating closeouts, factory seconds, irregulars, and overstocked products. United Grocery Outlet was founded in 1974 and is based in Athens, Tennessee.
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Buyer Overview 1

Buyer

Grocery Outlet

Emeryville, California, United States

Category Company
Founded 1946
Sector Retail
Employees1,692
Revenue 4.4B USD (2024)
DESCRIPTION

Grocery Outlet is a value retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores. Grocery Outlet has more than 350 stores in California, Washington, Oregon, Pennsylvania, Idaho and Nevada. Grocery Outlet was founded in 1946 and is based in Emeryville, California.


Deal Context for Buyer #
Overall 1 of 1
Sector: Retail 1 of 1
Type: Add-on Acquisition 1 of 1
State: Tennessee 1 of 1
Country: United States 1 of 1
Year: 2024 1 of 1

Seller Profile 1

SELLER

Gen Cap America

Nashville, Tennessee, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 250M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Gen Cap America, Inc. is a private investment firm focused on acquisitions and recapitalization of mid-sized businesses. Gen Cap looks to invest in privately held companies or non-core divestitures generating $10 to $200 million in annual revenues. Gen Cap prefers businesses operating in basic industries, such as manufacturing, distribution, and services. The Firm avoids investing in real estate or 'high-tech' businesses. Gen Cap America was formed in 1988 and is based in Nashville, Tennessee.


Deal Context for Seller #
Overall 28 of 30
Sector: Retail 2 of 2
Type: Add-on Acquisition 15 of 15
State: Tennessee 4 of 4
Country: United States 28 of 30
Year: 2024 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-26 Shape

Addison, Illinois, United States

Shape is a designer and manufacturer of custom magnetic products. Shape specializes in the production of large transformers with rated wattage above 250 watts, which are used in airport lighting, airport security systems, ultraviolet curing, water sanitation, telecom equipment and other niche applications. Shape was founded in 1966 and is based in Addison, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-02-26 BloApCo

Germantown, Wisconsin, United States

BloApCo designs and manufactures highly engineered solid waste and scrap handling systems and process equipment. BloApCo’s products include shredding systems, trim handling systems, material handling fans, and conveying systems primarily utilized in the paper, packaging, and corrugated industries. BloApCo was founded in 1933 and is based in Germantown, Wisconsin.

Sell -