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MILWAUKEE - Ultra Mart Foods, Inc., a subsidiary of Roundy's, Inc. said that it has signed an agreement to purchase all of the retail grocery stores owned by McAdams, Inc. McAdams operates seven Pick 'n Save grocery stores located in Mukwonago, Muskego, New Berlin, Oconomowoc, Sussex, and Wales, Wis.
"When these stores were made available for sale, this was an excellent opportunity for the company," Roundy's c.e.o. Robert Mariano told Progressive Grocer. "These stores fit into our plan for growth, and in addition the stores themselves are a good fit because they have already been operating within our distribution and advertising networks."
Although Mariano said they have no specific growth plans at this time, "we, like so many other companies, continue to look for opportunities for growth and development. If there are things that are out there that make sense, we will take a careful and studied look at it, and if we can work out a deal, we will get it done."
The stores fall within traditional suburban-type markets, upscale communities, and well-developed locations. "These communities are very similar to those of the other Pick 'n Saves that we operate," said Mariano. "Because of this, from the prospective of the customer, the transition will be seamless. We have some technology things to take care of to make the systems homogenous, but beyond that the customer will not see much of a difference."
The transaction is expected to be completed within the next 60 to 90 days and is subject to regulatory approvals.
Roundy's is one of the largest food wholesalers and retailers in the Midwest, currently supplying over 800 stores in 14 states. In addition, Roundy's operates 120 retail grocery stores in Wisconsin and Minnesota under the Pick 'n Save, Copps, and Rainbow banners.
-- Joseph Tarnowski