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Mexican grocer Grupo Comercial Chedraui to buy Smart & Final Holdings in $620 mln deal

May 13 (Reuters) - Grupo Comercial Chedraui said on Thursday its unit would buy warehouse store business Smart & Final Holdings Inc for $620 million, including debt, as the Mexican grocer looks to expand its footprint in the United States.

Private equity firm Apollo Global Management Inc is selling Smart & Final to Grupo Comercial Chedraui’s (GCC) subsidiary Bodega Latina Corp.

The deal is expected to close in the second or the third quarter, pending U.S. and Mexican regulatory approvals and other customary closing conditions.

Apollo acquired reut.rs/33NQebr Smart & Final in 2019 for about $1 billion and sold reut.rs/2QiSFQo its warehouse unit last year for $970 million to US Foods Holding Corp.

Smart & Final generated revenues of about $4.1 billion and adjusted core earnings of $167 million, for the fiscal year ended Jan. 3.

After closing of the deal, Smart & Final will operate as a separate operating unit within GCC, with limited integration. (Reporting by Arunima Kumar in Bengaluru; Editing by Rashmi Aich)

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