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LOS ANGELES -- Unified Grocers, Inc. last week agreed to buy certain assets and assume certain liabilities of Associated Grocers, Inc. Terms of the agreement were not disclosed.
The execution of the asset purchase agreement marks a milestone in the process that was initiated on May 7, when a Letter of Understanding between the two companies was announced. The transaction requires approval from AG’s shareholders before it can close.
“This transaction will strengthen the competitiveness of independent retail grocers throughout the Western United States,” said John Runyan, president and c.e.o. of AG. “The combined sales volume of our two companies creates an organization with significant purchasing power and marketplace clout, as well as a wholesale supply channel that will continue to become more effective and efficient.”
Alfred A. Plamann, president and c.e.o., Unified Grocers, said: “This agreement represents a major milestone in our efforts to combine the forces of cooperative wholesalers in the Western United States and we eagerly anticipate the closing of this transaction.”
As part of an initiative to strengthen its corporate brand and image in the marketplace, Unified Western Grocers recently changed its name and is now doing business as Unified Grocers.
AG is a wholesaler providing food, nonfood, general merchandise, and retail services to stores throughout Washington, Oregon, Alaska, Hawaii, Guam, and the Pacific Rim.
Unified Grocers, Inc. is a retailer-owned wholesale grocery distributor that supplies approximately 600 independent retailers throughout the Western United States.