Business & Tech

Fresh & Easy Sold to Yucaipa Companies

Tesco hopes the deal will allow the company to exit the U.S. market while protecting more than 4,000 jobs at Fresh & Easy.

The equity firm controlled by billionaire Ron Burkle announced today it is buying El Segundo-based Fresh & Easy Neighborhood Market from U.K.-based Tesco, but terms of the deal were not released.

The deal, in which Yucaipa Cos. will assume the Fresh & Easy's debt, is expected to be completed in about three months.

"Fresh & Easy is a tremendous foundation," Burkle said. "Tesco should be applauded for giving their customers an affordable, healthy, convenient shopping experience. Its dedicated employees and great base of customers give us a solid starting point to complete Tesco's vision with some changes that we think will make it even more relevant to today's consumer. We plan on continuing to build Fresh & Easy into a "next-generation convenience retail experience," providing busy consumers with more local and healthy access for their daily needs."

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Yucaipa Cos., founded in 1986, has used leveraged buyouts to acquire majority positions in grocery store chains such as Ralphs and Kroger. More recently, Yucaipa Cos. bought a stake in The Great Atlantic & Pacific Tea Co. and Barney's New York.

Philip Clarke, Tesco's chief executive, said the sale was the best for Tesco shareholders and Fresh & Easy's stakeholders.

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"It offers us an orderly and efficient exit from the US market, while protecting the jobs of more than 4,000 colleagues at Fresh & Easy," he said.

Fresh & Easy, which targeted California and the Southwest when it entered the U.S. market in 2007, has about 150 stores nationwide and a distribution hub in Riverside. The nearest Fresh & Easy store to Altadena is the Pasadena location at 603 S Lake Ave.

Tesco is the No. 3 retailer worldwide in terms of sales, behind Wal-Mart Stores Inc. and Carrefour SA.

- City News Service


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