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Florida may seen grocery store merger

| Apr 6, 2017 | Mergers & Acquisitions |

Florida residents have good reason to be interested in some of the inner workings of their local grocery stores as such things can impact their selections and the prices they pay for food. More and more, the grocery industry has been experiencing consolidation among large companies in part to remain competitive and manage ongoing transportation challenges and legislation. 

A new merger of two grocery companies has been proposed that would give one company that all but left the state a strong foot back in Florida for the future. In 2012, Albertson’s made changes that resulted in it having only three stores under its Safeway name in Florida. Trucking regulations can make getting stock to stores a challenge as the maximum number of hours truckers are allowed to drive at one time is exceeded by the number of hours it takes to get from the nearest Texas-based distribution center to the Florida stores.

Sprouts, in contrast, has a distribution center in Atlanta which makes it easier and cheaper to get items to stores in Florida. This is one of the big reasons Albertson’s is seeking to purchase Sprouts. If the transaction is approved, the intention is to turn publicly held Sprouts into a privately held company.

When considering any such business transaction, companies in Florida may wish to consult with an attorney to understand all of the different steps involved so as to not overlook any detail.

Source: Tampa Bay Business Journal, “Potential merger with Sprouts would give Albertson’s immediate growth path in Florida,” Ashley Burbal Kritzer, March 20, 2017

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