The Richmond Times Dispatch had a piece over the weekend about the much speculated about sale of Ukrop’s Super Markets, wondering if any company would be willing to spend up to an estimated $248 million to acquire a company that is seeing its market share decline in a region that is saturated with food retailers.
The story also suggests that Harris Teeter probably is best positioned to buy Ukrop’s because it has ready access to financing and also is most compatible in terms of geography and format. The other two companies most mentioned as potential suitors – Supervalu and Ahold – may not have that kind of flexibility.
Finally, the Times Dispatch notes that just because Ukrop’s is circulating a prospectus doesn’t mean that the family has to sell the company – majority shareholders James Ukrop and Robert Ukrop have to decide whether the time and price is right. And this decision will be linked not just to economy, but to the next generation that will have to commit to leading the company in the future.
The story also suggests that Harris Teeter probably is best positioned to buy Ukrop’s because it has ready access to financing and also is most compatible in terms of geography and format. The other two companies most mentioned as potential suitors – Supervalu and Ahold – may not have that kind of flexibility.
Finally, the Times Dispatch notes that just because Ukrop’s is circulating a prospectus doesn’t mean that the family has to sell the company – majority shareholders James Ukrop and Robert Ukrop have to decide whether the time and price is right. And this decision will be linked not just to economy, but to the next generation that will have to commit to leading the company in the future.
- KC's View:
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There are a lot of variables, and it is hard at this moment to figure out what the odds on an actual sale might be.
It is interesting, though, that not everybody feels that Ukrop’s operations are firing on all cylinders. Check out one of the emails in Your Views, below.
