Skip to main content

Grocery Outlet under new ownership


Regional food retailer Grocery Outlet has swapped one private equity owner for another as it looks to drive growth beyond its existing 210 store footprint in six Western states.

The company, which bills itself as an “extreme value” grocer, said it entered into a definitive agreement to be acquired by affiliates of Hellman & Friedman LLC along with Grocery Outlet’s senior management team from its principal owner, Berkshire Partners LLC. The terms of the transaction were not disclosed.

“We are proud of Grocery Outlet’s 68 year history of bringing extreme value to our customers and building trusted partnerships with our suppliers. We thank Berkshire Partners for their contributions to Grocery Outlet’s growth and development over the past five years and welcome Hellman & Friedman as our new partner,” according to a joint statement from Grocery Outlet’s co-CEOs MacGregor Read and Eric Lindberg. “We are excited to continue to build on the success of Grocery Outlet for our customers, independent operators and employees.”

Grocery Outlet offers branded grocery products at significant discounts through a unique sourcing model of purchasing discounted surplus inventory directly from over 3,000 supplier partners, according to the company. Founded in 1946 by Jim Read, the company continues to be operated by third generation Read family members.

“Grocery Outlet’s unique operating model delivers tremendous value to consumers and suppliers alike,” said Erik Ragatz, Managing Director of Hellman & Friedman. “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.”

Grocery Outlet stores are located in California, Idaho, Nevada, Oregon, Washington, and Pennsylvania and offer refrigerated and frozen foods, fresh produce, fresh meat, organics, dry groceries, beer and wine, health and beauty care, over-the-counter drugs and household products.

This ad will auto-close in 10 seconds