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Grocery Outlet, the discount supermarket chain with 210 locations in six states, announced that its principal owner, Berkshire Partners, is selling the company to Hellman & Friedman, an investment firm. The chain is the largest “extreme value” supermarket in the country and sells branded groceries at a discount due to its sourcing system of purchasing surplus inventory from more than 3,000 supply partners.
Jim Read founded the company in 1946 and Eric Lindberg and MacGregor Read, third generation of the Read family, still operate the chain as co-CEOs. Stores, which are located in California, Idaho, Nevada, Oregon, Washington and Pennsylvania, are managed by local, independent operators, and the company has plans to open 16 new stores.
“Grocery Outlet’s unique operating model delivers tremendous value to consumers and suppliers alike,” said Erik Ragatz, managing director of Hellman & Friedman in a press release. “With a network of high quality independent operators and an outstanding base of employees, Grocery Outlet is very well positioned to continue on its growth trajectory. We look forward to partnering with Eric and MacGregor and the rest of the management team as the company moves into its next phase of growth.”