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Grocers Supply Co. will announce this morning its acquisition of Fiesta Mart, the Texas supermarket chain that pioneered the notion of ethnic supermarkets and that now has 50 stores in Houston, Dallas-Fort Worth, Austin, and Waco.

Terms of the deal have not yet been revealed, according to local press reports out of Texas.

Grocers Supply - which serves 650 grocery stores and 1200 c-stores in Texas, Oklahoma and Louisiana – reportedly wanted to acquire Fiesta, which is its largest customer, to protect itself against the company being sold. Fiesta has been having troubles lately in the highly competitive Texas market as Wal-Mart has ratcheted up the level of competition.

It is believed that Grocers Supply could either operate the stores itself or offer them to other retail customers that it serves.
KC's View:
We hope that this sale gives Fiesta access to the kind of capital it needs to survive and grow. Our fondest memory of the company was during its boom years, when it constructed a store with a giant hydroponic garden that it used to grow its own vegetables…a concept that ultimately was unworkable but that showed panache, a willingness to innovate and a sense of the theatrical. And we respect people and companies that take chances.