Price Chopper/Market 32, Tops Get a New Parent

Price Chopper/Market 32 of Schenectady, N.Y., and fellow New York-based grocer Tops Markets of Williamsville, have announced the closure of their merger, as proposed earlier this year.

While under the terms of the agreement, the two companies will be managed locally by their respective leaders, and retain their established brand identities, the grocery chains will be owned and overseen by a new parent company, Northeast Grocery, Inc.

Scott Grimmett, the current president and CEO of Price Chopper/Market 32, will lead the new parent company. He will also serve on its board of directors, as will Frank Curci, former Tops Markets chairman and CEO.

The agreement solidifies an alliance between the two storied independent grocery chains, as it virtually doubles their collective footprint in the Northeast. With increased scale across their now-combined footprint of nearly 300 stores, the merged companies are better positioned to leverage increased value for customers; advance shared opportunities for innovation; and fortify the depth of their expanded workforce, community, and trade partnerships, thereby becoming stronger and more competitive, said the companies in a joint statement.

“We’re appreciative of the FTC’s diligence in reviewing this merger and grateful to have received all of the necessary approvals. Now, we can dedicate ourselves to bringing these two storied grocery chains together, leveraging best practices, developing new opportunities, and finding efficiencies that will help us continue to deliver distinctive shopping experiences,” said Grimmett in a statement.

The regulatory review process by the Federal Trade Commission mandates the divestiture of 12 of the combined companies’ stores. C&S Wholesale Grocers (C&S) has been approved to purchase all 12 stores. Grand Union Markets, an affiliate of C&S Wholesale Grocers, will operate the stores. C&S will continue to recognize the union workforce at these locations.

“With our recent announcement of the purchase of Piggly Wiggly Midwest, this is another very exciting opportunity for C&S to further expand into the retail market,” said Rick Cohen, executive chairman, C&S Wholesale Grocers, in a release. “This is an important component of our growth and future success. The Grand Union stores will showcase C&S’s already successful retail strategies and be supported by our strong wholesale supply chain and programs to deliver solid retail performance.”

“The Grand Union stores will offer competitive prices on a wide variety of fresh foods and an extensive assortment of brand name groceries, as well as our signature private brands. Each store will contain localized assortments to meet their shoppers’ needs,” said Bob Palmer, CEO of C&S Wholesale Grocers. “We are very excited to bring this iconic supermarket back to the communities it has fed for generations and continue our legacy.”

The 12 Tops stores to be divested and purchased by C&S Wholesale Grocers include 11 locations in New York: Cooperstown, Cortland, Norwich, Owego, Peru, Rome, Saranac Lake, Sherrill, Warrensburg and two stores in Watertown as well as one location in Rutland, Vt.

“We believe that this merger will be a positive for our membership, preserving union jobs and strengthening the company’s prospects into the foreseeable future,” said Frank DeRiso, president of the UFCW Local One. “We are pleased that we have an agreement with the new owner and they are committed to retaining all of the existing union jobs and contracts. We would like to thank the office of the New York State Attorney General, Senator Chuck Schumer and our UFCW International Union for their guidance, assistance and cooperation during this complicated process. This merger will benefit both consumers and union members.”

Blaine Bringhurst will serve as president of the Price Chopper/Market 32 business and John Persons as the president of the Tops Markets business. Dave Langless, the CFO of Tops, will serve as the parent company’s CFO.

Northeast Grocery, Inc. will be headquartered in Schenectady, N.Y., as will Price Chopper/Market 32. Tops Markets will retain its main office in Williamsville, N.Y.

“Completing the details of this merger marks a major milestone for the management teams of both Price Chopper/Market 32 and Tops,” said Grimmett. “And I'm confident that our teammates and associates are excited about it and will continue to deliver excellence.”

PJ Solomon acted as exclusive financial advisor to Price Chopper. Harter Secrest & Emery and Wilson Sonsini served as legal advisors to Price Chopper. Deutsche Bank Securities Inc. was exclusive financial advisor to Tops Markets. Paul Weiss and Hogan Lovells served as legal advisors to Tops Markets. The Food Partners advised Tops Markets on the divestiture of the 12 stores.

Price Chopper/Market 32 operates 130 Price Chopper and Market 32 grocery stores and one Market Bistro, employing 18,000 teammates in New York, Vermont, Connecticut, Pennsylvania, Massachusetts and New Hampshire. C&S Wholesale Grocers, Inc. provides supply chain solutions and wholesale grocery in the U.S.