The Save Mart Companies, a Modesto, Calif.-based grocer with approximately 200 stores, has been acquired by private equity firm Kingswood Capital Management of Los Angeles. Terms of the transaction were not disclosed.
Started by the Piccinini and Tocco families, Save Mart recently marked its 70th anniversary as a family-owned, “Valley Proud” grocer. It operates stores under the banners of Save Mart, Lucky California and FoodMaxx throughout California and Northern Nevada.
In addition to its retail operation, the company also operates SMART Refrigerated Transport and is a partner in Super Store Industries, which owns and operates a distribution center in Lathrop, Calif., and the Sunnyside Farms dairy processing plant in Turlock.
“I’m excited for this opportunity with Kingswood to invest in and grow The Save Mart Companies family of stores,” Chris McGarry, CEO of The Save Mart Companies, said in a news release. “The Piccinini family did a tremendous job in fostering a commitment to innovation and service as they built and grew this company in the Central Valley and throughout California.
As a result, we have great stores and a committed team of 14,000 employees who provide fantastic local products and are wonderful stewards of the communities in which they live and work. While this change in ownership will be transparent to our team and customers, we know that this investment will benefit them and the communities we serve.”
With the addition of The Save Mart Companies, Kingswood is expanding its existing Northern California presence, which includes ownership of the Alameda-based Cost Plus World Market and Lind Marine, a diversified marine services business.
“At Kingswood, our goal is to make good businesses even better, and The Save Mart Companies presents us with a great opportunity to do so,” Alex Wolf, managing partner and founder of Kingswood, said. “Their history in the Central Valley provides a strong foundation for future profitable growth, and we look forward to working with Chris and the team to position these iconic grocery brands for the future.”
Kirkland and Ellis, LLP served as legal advisor to Kingswood on the transaction. Sheppard Mullin served as legal advisor to the company, and Solomon Partners and North Point were financial advisors to the company.
