Burkle’s Yucaipa To Acquire Fresh & Easy, As Tesco Leaves U.S. BehindSeptember 11, 2013
Billionaire investor Ron Burkle’s Yucaipa Cos. has agreed to acquire the Fresh & Easy supermarket chain from U.K. grocery giant Tesco, in a move that marks Tesco’s departure from the U.S. market after a largely unsuccessful six-year run. Under the terms of the deal, Yucaipa will acquire more than 150 of Fresh & Easy’s nearly 200 stores across California, Nevada and Arizona, as well as production and distribution facilities, for an undisclosed price. Those stores not included in the deal will be shuttered in the coming weeks.
While Tesco is said to have invested more than $1.5 billion in Fresh & Easy since establishing it in 2007, the upscale grocery chain never became profitable. Still, Fresh & Easy was well-known on the West Coast for its expansive range of wine offerings, including around 500 labels. As Shanken News Daily previously reported, Burkle and Tesco were reportedly in talks for a few months before announcing the deal yesterday.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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