RICHMOND, Va. — Ukrop’s Super Markets, the family-owned chain that became a local institution and an industry icon, is being acquired by Ahold’s Giant-Carlisle division, the chains said today. Ahold said it would pay about $140 million for 25 stores and one new location.
The sale announcement ends months of speculation about the future of Ukrop’s, which was founded here in 1937 by James Ukrop and grown into a 27-store chain by his sons, Jim and Bobby Ukrop. The chain is noted for pioneering strategies including loyalty cards and prepared foods that became staples of the supermarket industry, while adhering to high levels of customer service and firm policies of not opening on Sundays or selling alcohol.
Giant-Carlisle, the Ahold division based in Carlisle, Pa., like Ukrop’s is a non-union operator. It is known for operating large stores focused on variety and everyday low prices under the Giant and Martin’s names in Pennsylvania and Maryland.
Ukrop’s has estimated annual sales of about $600 million. As reported previously in SN, a first attempt to sell the chain resulted in a bid from a private equity group, but that deal fell apart due to financing concerns and also because of expenses that would be associated with breaking Ukrop’s supply contract with Supervalu.
“Ahold has been a company focused on divesting its properties for several years,” Neil Stern, senior partner at McMillan Doolittle, Chicago, told SN. “This is a good indication that they feel they have they have their business back in order.”
“Ukrop’s is a great company with a strong heritage in an attractive market,” John Rishton, Ahold’s chief executive officer, said in a statement. “We believe that Giant-Carlisle and Ukrop’s will be a strong combination.”
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