Pan Pacific International Holdings, which owns more than 600 stores globally, has announced an agreement to acquire high-end California chain Gelson’s from TPG Capital.
Gelson’s operates 27 stores and generated net sales of $872 million in 2020, according to a news release.
“This chain had significant market share gains as its reputation for reliability and the strong support of its loyal customer base proved beneficial during the COVID-19 pandemic,” PPIH wrote in its announcement of the transaction. “(The company’s) business area and the surrounding areas continue to experience ongoing population growth, a large portion of which is in communities with consumers seeking high-quality products. We therefore see potential for continuous growth to be achieved by opening new stores and attracting new customers at existing stores.”
Significant attributes of the company include “strong brand recognition, a loyal customer base, and an experienced management team well versed in its market,” PPIH wrote.
PPIH anticipates that Gelson’s will be a “powerful asset” that will help its new parent company improve its North American operations, particularly ”the need to strengthen management foundations, develop new store formats, and expand store networks,” according to the announcement.
Of the 638 stores PPIH operates, 582 are in Japan, according to a news release from TPG. Others are in Singapore, Hong Kong, Thailand, Taiwan, Hawaii and California.
“We strongly respect Gelson’s brand and history of 70 years known as a premium supermarket chain in the U.S.,” Naoki Yoshida, president and CEO of PPIH, said in the release from TPG. “We have set our footprint in the state of California when we acquired Marukai Corp. in 2013, and we look forward to expanding our presence in California and dedicating ourselves to satisfying customers who value quality products, cleanliness, convenience and personal service. We feel excited to work with Gelson’s team to accelerate future growth.”
Gelson’s has been owned by TPG since 2014, and since then the chain has expanded from 17 to 27 locations and has been highly ranked by Consumer Reports as a top grocery brand.
“We are incredibly proud of all we’ve accomplished with (Gelson’s president and CEO Rob McDougall) and the Gelson’s team over the past seven years,” Paul Hackwell, partner at TPG, said in the release. “Together we’ve been able to meaningfully grow Gelson’s footprint while maintaining the qualities that make the brand so special: its expansive but localized offering, focus on quality and freshness, and unwavering commitment to customer service. We thank the entire Gelson’s team for their partnership and wish them continued success as they enter their exciting next chapter with PPIH.”
Gelson’s will celebrate its 76th anniversary in July.
“We have long appreciated TPG’s understanding of the Gelson’s brand and its strong support over the past seven years, from financing newly built and acquired stores to investing in our Santa Fe Springs distribution center,” McDougall said in the release. “As we look to the future, we are excited about opportunities for new growth and partnerships under PPIH, while remaining focused on our longtime commitment to the highest standards of quality, value and unsurpassed customer service. PPIH leadership has visited every one of our locations and has been incredibly complimentary of our stores and teams, as well as our customer service philosophy.”