Retail News Breaks
Harris Teeter explores possible sale
February 14th, 2013
MATTHEWS, N.C. – Harris Teeter Supermarkets Inc. has hired J.P. Morgan Securities to evaluate strategic options, including a possible sale of the food and drug retailer.
The Southeast supermarket chain said late Wednesday that it announced the retention of J.P. Morgan in response to media reports that the company was exploring an asset sale.
"The company confirmed today that it has retained J.P. Morgan Securities LLC to assist the company in holding discussions with certain parties regarding strategic alternatives," Harris Teeter stated. "The company was approached by two private equity firms who expressed an interest in purchasing the company. In order to fulfill its duty to its shareholders to evaluate opportunities to increase shareholder value, the company retained J.P. Morgan to assist it in conducting discussions with certain highly qualified parties."
As of the end of its 2012 fiscal year in October, Harris Teeter operated 208 supermarkets — including 143 pharmacies — in North Carolina (136), Virginia (38), South Carolina (14), Maryland (seven), Tennessee (five), Delaware (three), the District of Columbia (three), Florida (one) and Georgia (one). Sales for the year were up nearly 6% to $4.54 billion, and same-store sales rose almost 4%.
"The company intends to continue its strategic new-store growth plan and maintain the employment of its associates in its stores and its distribution and manufacturing facilities in Indian Trail, Greensboro, and High Point, N.C., as well as at its corporate headquarters in Matthews, N.C.," Harris Teeter said Wednesday.
On Jan. 31, Harris Teeter reported that fiscal 2013 first-quarter sales rose 3.7% to $1.16 billion, with comparable-store sales growing 2.5%.
More Retail News Breaks >>