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HOUSTON - The Grocers Supply Co., Inc., a regional distributor based here, announced yesterday that it has entered into an agreement to acquire all of the outstanding stock of Fiesta Mart, Inc., a Texas chain that it has supplied since 1972.
Completion of the acquisition is subject to approval by Fiesta's shareholders. Both companies are privately held, and the terms of the sale weren't disclosed.
Fiesta was founded in 1972 by Donald Bonham and O.C. Mendenhall. Today, the chain operates 50 supermarkets in Houston, Austin, Dallas, Fort Worth, and Waco. It is recognized as one of the nation's premier niche food operators catering to ethnic customers, as well as the general market. Fiesta offers a wide variety of domestic and imported foods from around the world. The retailer also owns 17 Beverage Mart liquor stores.
Fiesta management will remain in place and there will be no change in the present operation and business philosophy, according to Grocers Supply Co.
"We've had a very close working relationship with Fiesta throughout its history, and they are one of our larger customers," David R. Hoffman, s.v.p. of sales and marketing at Grocers Supply, told Progressive Grocer.
"This was a strategic move to protect our wholesale business, and we believe that in the long run, the acquisition will benefit Grocers Supply, as well as Fiesta and all of our other retail customers," he noted.
Grocers Supply was founded in 1923, and today distributes grocery and food products to more than 700 independently owned supermarkets throughout Texas and Western Louisiana.