Grocery Outlet Holding Corp. is acquiring United Grocery Outlet, a discount grocer operating in the Southeastern United States, the company reported on Friday.
United Grocery Outlet’s 40 stores and distribution center will enable the grocer to expand into Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia.
“United Grocery Outlet is a natural fit given our similar opportunistic buying strategies, customer value propositions, and shared mission of serving our communities. This acquisition provides Grocery Outlet with scale in a new region as well as a platform for future expansion in the Southeast. We are excited to welcome the United Grocery Outlet team into the GO family, and we look forward to working together on the many growth opportunities ahead.”
United Grocery Outlet, which celebrates its 50th year in business this year, is expected to close on the deal with Grocery Outlet Holding Corp. in the early second quarter of 2024.
Grocery Outlet plans to open between 15 and 20 news stores in 2024, the company said.