Page 6 of 10
Re: Raley's to buy Arizona chain Bashas'
Posted: October 10th, 2021, 10:22 pm
by HCal
ClownLoach wrote: ↑October 10th, 2021, 1:56 pm
There aren't going to be enough cost savings from reducing nice, charitable contributions to offset the financing costs of buying this chain. It's some low hanging fruit but that's about it. The problem with mergers and acquisitions these days is that aside from trillion dollar companies like Apple everything is financed. That means interest on the debt. If they could barely afford to keep the floors waxed there is unlikely to be enough leverage generated by combined buying power to offset the long term debt without raising prices and cutting labor. That's why I just don't see this as a long-term transaction. It is a precursor to another one.
Do we know that Raley's is paying cash? If not, then it could have been a stock swap, in which case there would be no leverage issue.
If there is a leverage issue, then there are two options: either Raley's could sell off or liquidate some portion of the acquired stores to pay the debt, or they could sell themselves to private equity (or Kroger!).
Re: Raley's to buy Arizona chain Bashas'
Posted: October 10th, 2021, 11:20 pm
by storewanderer
HCal wrote: ↑October 10th, 2021, 10:22 pm
If there is a leverage issue, then there are two options: either Raley's could sell off or liquidate some portion of the acquired stores to pay the debt, or they could sell themselves to private equity (or Kroger!).
I really hope they do not sell out to anyone. I'd prefer to see them remain as a founding family controlled regional chain. They can add more regions. Before the ONE Fiasco, I thought quite highly of Raleys. That will be easy enough to un-do, or at least put the brakes on.
Re: Raley's to buy Arizona chain Bashas'
Posted: October 11th, 2021, 2:09 am
by HCal
storewanderer wrote: ↑October 10th, 2021, 11:20 pm
I really hope they do not sell out to anyone. I'd prefer to see them remain as a founding family controlled regional chain. They can add more regions. Before the ONE Fiasco, I thought quite highly of Raleys. That will be easy enough to un-do, or at least put the brakes on.
Totally agree. I just hope they can digest Bashas without too much financial strain.
Re: Raley's to buy Arizona chain Bashas'
Posted: October 11th, 2021, 8:17 am
by kr.abs.swy
Don't forget that these companies have been much more profitable than usual over the past 18 months. Probably none of us know what Raley's balance sheet looks like, but there is a decent chance that they have reduced debt or built a bunch of cash over the past 18 months. Or they could have paid a nice dividend ...
HCal wrote: ↑October 10th, 2021, 10:22 pm
ClownLoach wrote: ↑October 10th, 2021, 1:56 pm
There aren't going to be enough cost savings from reducing nice, charitable contributions to offset the financing costs of buying this chain. It's some low hanging fruit but that's about it. The problem with mergers and acquisitions these days is that aside from trillion dollar companies like Apple everything is financed. That means interest on the debt. If they could barely afford to keep the floors waxed there is unlikely to be enough leverage generated by combined buying power to offset the long term debt without raising prices and cutting labor. That's why I just don't see this as a long-term transaction. It is a precursor to another one.
Do we know that Raley's is paying cash? If not, then it could have been a stock swap, in which case there would be no leverage issue.
If there is a leverage issue, then there are two options: either Raley's could sell off or liquidate some portion of the acquired stores to pay the debt, or they could sell themselves to private equity (or Kroger!).
Re: Raley's to buy Arizona chain Bashas'
Posted: October 11th, 2021, 9:58 am
by jamcool
storewanderer wrote: ↑October 10th, 2021, 11:20 pm
HCal wrote: ↑October 10th, 2021, 10:22 pm
If there is a leverage issue, then there are two options: either Raley's could sell off or liquidate some portion of the acquired stores to pay the debt, or they could sell themselves to private equity (or Kroger!).
I really hope they do not sell out to anyone. I'd prefer to see them remain as a founding family controlled regional chain. They can add more regions. Before the ONE Fiasco, I thought quite highly of Raleys. That will be easy enough to un-do, or at least put the brakes on.
Bashas’ did experiment with the “healthy for you” market concept in a few stores. Ike’s Farmers Market was similar to Sprouts in concept, but it was closed due to the bankruptcy. (Ike Bashas was the first family member to operate stores under the Bashas’ name - they started as City Market in Chandler- no relation to the Colorado chain)
Re: Raley's to buy Arizona chain Bashas'
Posted: October 11th, 2021, 2:13 pm
by jamcool
Does Ahold Delahaize want to expand West?
Re: Raley's to buy Arizona chain Bashas'
Posted: October 15th, 2021, 11:07 am
by retailfanmitchell019
jamcool wrote: ↑October 11th, 2021, 2:13 pm
Does Ahold Delahaize want to expand West?
No, but they have wanted to in the past. Ahold considered buying Raley's and Stater years ago.
Re: Raley's to buy Arizona chain Bashas'
Posted: October 15th, 2021, 11:29 am
by HCal
retailfanmitchell019 wrote: ↑October 15th, 2021, 11:07 am
jamcool wrote: ↑October 11th, 2021, 2:13 pm
Does Ahold Delahaize want to expand West?
No, but they have wanted to in the past. Ahold considered buying Raley's and Stater years ago.
When was that? Did either of them actually want to sell?
Re: Raley's to buy Arizona chain Bashas'
Posted: October 15th, 2021, 12:30 pm
by retailfanmitchell019
HCal wrote: ↑October 15th, 2021, 11:29 am
When was that? Did either of them actually want to sell?
This was during the great supermarket consolidation around 2000. Who knows if they wanted to sell.
Re: Raley's to buy Arizona chain Bashas'
Posted: December 17th, 2021, 7:04 pm
by arizonaguy
The deal is complete. Bashas' is now part of Raley's.
https://www.supermarketnews.com/retail- ... as-company
Also, it appears that at least initially, 3 Basha family members will remain part of the leadership team of the Bashas' division.