Unified Western Grocers Inc has finished purchasing certain assets and liabilities of Seattle WA-based Associated Grocers Inc (AG). Begun by both firms in May 2007, the transaction closed Sept 30, 2007.
Total purchase price is $38.5 million, subject to customary post-closing adjustments in the next 45 days. Assets obtained by Los Angeles CA-based Unified include AG's inventory of grocery products and equipment; liabilities taken on include AG's payable accounts, the employee pension plan, and a lease on the company's Seattle warehouse. About 650 AG employees were hired by Unified and have started work.
Unified has acquired new supply agreements from most of AG's grocery retailer client base. The wholesale grocery disttributor also took over some supply agreements between AG and other retail clients.