Two Hispanic-focused retailers based in Southern California said Monday they have formed a partnership to acquire Pro’s Ranch Markets out of bankruptcy.
Anaheim, Calif.-based Northgate Gonzalez Market and Ontario, Calif.-based Cardenas Markets formed Cardenas Northgate Group Ranch (CNG Ranch LLC) to acquire and operate the 11-unit Pro’s Ranch Markets. The purchase price is $55 million.
Pro’s, based in Phoenix, operates seven stores in Arizona, two in new Mexico and two in Texas. It filed Chapter 11 bankruptcy last May. It had estimated sales of $350 million in 2013.
CNG will also obtain the use of the Pro’s Ranch Markets corporate office — adjacent to one of the Phoenix stores — and a 151,000-square-foot warehouse in Phoenix. Operationally, the companies said Northgate’s team will take the lead, providing overall management, and direction for daily operations, all under the supervision of the CNG board of directors that includes members from both the Cardenas and Northgate organizations.
“We are confident that Cardenas’ and Northgate’s financial strength, supply chain structure and commitment to family values and integrity will reenergize these stores, and allow them to continue providing the wide-range of products, high-level of customer service and competitive prices that Pro’s Ranch customers have come to expect. We believe we can build upon the legacy of well-established values and the strong market presence that Pro’s Ranch is known for,” said Northgate Gonzalez Market co-president Oscar González Reynoso.
“Even though Pro’s Ranch has experienced a number of operational and financial difficulties over the last few years, it has continued to foster a fiercely loyal customer base — one that took years to develop — and was even voted Arizona’s Retailer of the Year in 2012,” said Jesus Cardenas, president of Cardenas Markets. “On behalf of both the Cardenas and González families, we recognize the loyalty and patience of the 2,500 Pro’s Ranch employees and are happy to provide some closure and peace of mind for them moving forward.”
Cardenas Markets currently own 26 stores in California and three in Nevada. Northgate Gonzalez Markets operates 38 stores in California.
“We are very pleased that two of the most successful Hispanic grocery store chains in the United States, Cardenas Markets and Northgate Gonzalez Market, will be acquiring our stores,” said Pro’s Ranch Market EVP and CFO Michael Provenzano. “These are two fine operators with whom we have had a 20-year relationship. It’s a win-win for everyone.”