Grocery Outlet Holding Agrees To Acquire United Grocery Outlet; No Financial Terms Disclosed
Portfolio Pulse from Benzinga Newsdesk
Grocery Outlet Holding has announced its agreement to acquire United Grocery Outlet (UGO), expanding its presence into six new states with 40 stores and a distribution center. The acquisition, expected to close early in Q2, is anticipated to be modestly accretive to 2024 earnings. Additionally, Grocery Outlet plans to open 15 to 20 stores in existing markets in 2024, totaling 55 to 60 net new stores.
February 15, 2024 | 9:32 pm
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Grocery Outlet's acquisition of UGO is expected to expand its footprint into six new states, with the deal being modestly accretive to 2024 earnings. The company also plans significant store expansions.
The acquisition of UGO by Grocery Outlet is a strategic move to expand its market presence into new states, which is likely to increase its market share and revenue. The deal's expected positive impact on 2024 earnings and the planned opening of additional stores in existing markets indicate potential growth, making it likely to have a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100