SCHENECTADY — Tops Markets has merged its operations with Price Chopper / Market 32 and both upstate New York–based grocery store chains have a new parent company, Northeast Grocery, Inc. The completed deal, announced Nov. 8, also resulted in the sale of 12 Tops stores. The Federal Trade Commission (FTC) approved the deal, and the […]
SCHENECTADY — Tops Markets has merged its operations with Price Chopper / Market 32 and both upstate New York–based grocery store chains have a new parent company, Northeast Grocery, Inc.
The completed deal, announced Nov. 8, also resulted in the sale of 12 Tops stores.
The Federal Trade Commission (FTC) approved the deal, and the regulatory-review process is now complete, per a joint news release.
Financial terms of the transaction were not disclosed. The companies first announced the merger agreement Feb. 8, and it took nearly nine months to complete the deal. Both chains operate stores in Syracuse and Central New York.
Under the terms of the agreement, their respective leaders will manage the two companies, and the grocery stores will continue operations under their established brand identities. However, Northeast Grocery, the new parent company, will own and oversee the stores.
As previously announced, Scott Grimmett, the current president and CEO of Price Chopper/Market 32, will lead the new parent company. He will also serve on its board of directors as will Frank Curci, former chairman and CEO of Tops Markets.
The agreement between the two independent grocery chains “virtually doubles their collective footprint” in the Northeast. “With increased scale across their now-combined footprint of nearly 300 stores, the merged companies are better positioned to leverage increased value for customers; advance shared opportunities for innovation; and fortify the depth of their expanded workforce, community, and trade partnerships, thereby becoming stronger and more competitive,” per the release.
“We’re appreciative of the FTC’s diligence in reviewing this merger and grateful to have received all of the necessary approvals,” Grimmett said. “Now, we can dedicate ourselves to bringing these two storied grocery chains together, leveraging best practices, developing new opportunities, and finding efficiencies that will help us continue to deliver distinctive shopping experiences.”
Blaine Bringhurst will serve as president of the Price Chopper/Market 32 business, and John Persons will be president of the Tops Markets business. Dave Langless, the CFO of Tops, will serve as the parent company’s CFO, according to the release.
Northeast Grocery, Inc. is headquartered in Schenectady, along with Price Chopper/Market 32. Tops Markets will retain its main office in Williamsville, a Buffalo suburb.
Founded by the Golub family in 1932, Price Chopper/Market 32 operates 130 Price Chopper and Market 32 grocery stores and one Market Bistro, employing 18,000 people in New York, Vermont, Connecticut, Pennsylvania, Massachusetts, and New Hampshire.
Tops Markets currently operates 162 grocery stores in New York, Pennsylvania, and Vermont, including five that are run by franchisees. The company describes itself as the largest private, for-profit employer in Western New York, with more than 14,000 workers, the release stated.
Tops Markets stores sold
The FTC’s regulatory-review process mandates the divestiture of 12 of the combined companies’ stores. Keene, New Hampshire–based C&S Wholesale Grocers (C&S) has been approved to acquire all 12 stores.
GU Markets LLC, an affiliate of C&S Wholesale Grocers, will operate these stores. C&S will continue to recognize the union workforce at these locations.
“We believe that this merger will be a positive for our membership, preserving union jobs and strengthening the company’s prospects into the foreseeable future,” said Frank DeRiso, president of the UFCW Local One. “We are pleased that we have an agreement with the new owner and they are committed to retaining all of the existing union jobs and contracts… This merger will benefit both consumers and union members.”
The 12 Tops stores to be divested and purchased by C&S Wholesale Grocers are in the following locations:
Cooperstown — 5 Commons Dr.
Cortland — 3932 State Route 281
Norwich — 54 E Main St.
Owego — 1145 NY-17C
Rome — 217 Erie Blvd. W.
Saranac Lake — 156 Church St.
Sherrill — 87 E State St.
South Watertown — 1330 Washington St.
Watertown — 22050 Seaway Shopping Ctr.
Rutland (Jefferson County) — 14 N. Main St.
Peru (Clinton County) — 50 S. Main St.
Warrensburg (Warren County) — 3836 Main St.