Valley chain Bashas' has agreed to be bought by a California regional grocer.
The deal was announced Friday afternoon between Bashas' and Raley's Holding Co., a regional grocer based in Sacramento. Financial terms weren't disclosed, but the move would have Bashas' continue to operate its headquarters in the Valley and operate as a fully formed operating company.
Edward "Trey" Basha, president and CEO of the local grocer, said the move would allow the Chandler-based company to expand.
“Today’s announcement represents the beginning of Bashas’ next, exciting chapter as a fully formed operating company within the larger Raley’s enterprise," he said in a press release announcing the move. "In Raley’s we will have a partner who will ensure we continue delivering exceptional customer and member experiences at a time when regional grocery competition has never been tougher – while staying true to the values that have shaped our history over 90 years.”
Bashas' was founded in 1932 by brothers Ike and Eddie Basha Sr. It consists of more than 100 of its the namesake stores as well as AJ's Fine Foods, Food City, Eddie's Country Store and Bashas' Dine stores.
Raley's is a similar private, family-owned grocery company founded in 1935. It operates 124 stores in northern California and Nevada with its Raley's, Bel Air, Nob Hill Foods and Raley's O-N-E Market brands.
Raley's President and CEO Keith Knopf said in a press release that the Bashas' brands were strong and poised for continued success.
“Today marks an important milestone in the ongoing legacy of two great companies," he said. "We are humbled to assume stewardship of the Bashas’ organization. Raley’s history of respecting the legacy of the brands we acquire assures continuity for Bashas’ customers, employees, and business partners and, on behalf of our 13,000 employees, I want to welcome Bashas' team members to our organization."
Under the deal, Bashas' will continue to operate in Arizona and New Mexico with Chandler as its base. There will be no changes to roles, compensation or benefits following the transaction.
Bashas' has seen success and struggles during its long time operating in the Valley. It filed bankruptcy in 2009, but emerged during the past 10 years as a stronger firm.
The grocery industry has seen consolidation during the past five years fueled by changing consumer habits, the availability of online grocery shopping, the entry of new players such as Amazon.com and other factors.