South Korea’s largest retailer e-mart announced on Dec. 10 that its U.S subsidiary Good Food Holdings has acquired New Seasons Market, a local grocery chain.
The acquisition cost is reportedly about US$200 million (about 239 billion won). “This acquisition has been carried out by Good Food Holdings, which operates independently in the U.S., based on its medium- and long-term growth plan,” said an e-mart official.
This deal will expand the Korean retail giant’s business in the U.S. Last year it entered the U.S. market by purchasing Good Food Holdings for US$275 million. The U.S grocery retailer now owns 24 stores. When the acquisition of New Seasons Market (operating 21 stores in the northwestern United States) is finalized, it will have a total of 45 stores.
In addition, e-mart will open the first outlet of its premium grocery store PK Market in Los Angeles. An industry insider said, “e-mart is turning its focus to overseas markets as its performance in the domestic market is sluggish,” adding, “e-mart will speed up expansion of its presence in foreign markets including the U.S., while closing unprofitable stores at home.”