Apollo Global Management said yesterday that it will sell Smart & Final, the Southern California-based retailer, to Bodega Latina Corp., the US subsidiary of Mexico's Grupo Comercial Chedraui, for more than $600 million.
The Wall Street Journal notes that this is just the latest case of an international player expanding its US footprint: "Japan-based Pan Pacific International Holdings Corp. agreed to buy Gelson’s Markets in California earlier this year, while Korea’s E-mart Inc. bought Good Food Holdings, the owner of Bristol Farms and New Seasons Market, in 2018." Bodega Latina already owns the El Super and Fiesta Mart chains, and this "acquisition will boost its geographic footprint in the western U.S., including California and Arizona."
The story points out that Apollo took Smart & Final private two years ago for $1 billion, and since then has sold the company's warehouse business to US Foods for $970 million.
- KC's View:
Why is it always companies from outside the US coming here to buy retailers, but we rarely read about US retailers buying up their global brethren?
I've never understood this.
As for this deal … I've always liked the Smart & Final company and the people there, and I'm happy for any deal that gives it the financial resources to compete in an increasingly cutthroat marketplace.