Texas-based grocer Brookshire Grocery is looking for buyers as consolidation in the supermarket industry continues unabated.
Reuters reported Brookshire Grocery was considering a sale valued at nearly $1 billion. The chain operates more than 150 stores under three banners—Brookshire's, Super 1 Foods and Fresh by Brookshire's.
Brookshire has annual earnings before interest, taxes, depreciation and amortization of around $150 million, according to Reuters. Brookshire is working with investment bank JPMorgan Chase on an auction, and several larger grocery chains have expressed interest.
The retailer did not confirm the news, according to Tyler Morning Telegraph, but did send an internal memo to management:
"We feel it is important for you to know that at this time we are currently evaluating potential strategic alternatives which may include a possible business combination. In connection therewith, it is our goal to preserve and strengthen the Brookshire Grocery business and heritage. However, we are still in the preliminary stages of considering any potential alternative, and we do not know at this stage whether any alternative will be agreed upon or completed."
The list of potential suitors includes Albertson's and Texas-based H.E.B. Brookshire is privately held and details of the potential sale have not been announced.
Grocery retailing is undergoing a huge shift, as sales slowly move online and regional chains are consolidated into larger players.
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