Smart & Final expands in California with acquisition of 32 Haggen locations
Smart & Final expands in California with acquisition of 32 Haggen locations
Smart & Final Stores will expand its footprint in California, having been approved as the purchaser of 32 store leases — four of which are supplemental to its previously announced stalking-horse bid — and related assets from Haggen for a total cash purchase price of approximately $68 million. The transaction is expected to close during Smart & Final's fiscal fourth quarter in 2015.
"We're excited about the opportunity to build upon our footprint in the important California market," David Hirz, chief executive officer of Smart & Final, said in a press release. "This strategic acquisition puts us ahead in Project 100, our plan to open 100 new stores, add 100 new teams and invest in 100 new neighborhood projects in the next four years. We continue to see significant room for growth within our existing markets. Through the acquisition of the Haggen stores, we will capture some of this opportunity."
The Haggen acquisition will result in Smart & Final assuming the leases and acquiring certain associated assets of 32 closed stores in Central California and Southern California. Smart & Final plans to convert the 32 stores to its Extra! store format.
As part of Project 100, Smart & Final plans to hire at least 5,000 new employees to staff new stores over the next four years. Additionally, with every store Smart & Final opens, the company will continue to give back to the communities it serves via philanthropic donations and partnerships.