SEATTLE, Sept. 17, 2007 (PRIME NEWSWIRE) -- Shareholders of Associated Grocers, Inc., a grocery wholesaler that has been distributing grocery products to independent retailers throughout the Pacific Northwest since 1934, approved the sale of their company to Unified Western Grocers(1), Los Angeles, Calif. at a special meeting held here Sept. 14, 2007. In agreeing to sell the company, AG shareholders also voted to dissolve the company effective with closing of the transaction, which is expected prior to Oct. 1, 2007.
The approval of these measures by AG's shareholders marks a major milestone in a transaction that will create a $4 billion dollar wholesale grocery company -- and one that will have the size and scale to enhance the competitiveness of independent grocers throughout the western United States. The vote on Sept. 14, 2007 was another step toward completing the sale process, which was initiated on May 7, 2007 when a Letter of Understanding between the two companies was signed. On Aug. 2, 2007, AG and Unified signed an Asset Purchase Agreement in which Unified agreed to purchase certain assets and assume certain liabilities of AG.
"The strong, positive statement made by our shareholders in exceeding the necessary votes for approval of the sale reflects the many months of hard work and due diligence by both companies to ensure our customers have a strong and competitive supply channel well into the future," said John Runyan, president and chief executive officer, Associated Grocers. "AG and Unified have clearly demonstrated that the combined strength of our two companies will create a powerful and effective wholesale partner for independent retailers for years to come."
Alfred A. Plamann, president and chief executive officer, Unified Grocers, said, "We are very pleased with the outcome of this vote. It is a very important milestone in this process. With the closing of the transaction nearing, we are anxious to blend the expertise and strength of our retail members in both companies to create the strongest independent retail grocery organization in the west."
About Associated Grocers, Inc.
Associated Grocers, Inc. is a wholesaler providing food, nonfood, general merchandise and retail services to stores throughout Washington, Oregon, Alaska, Hawaii, Guam, and the Pacific Rim. Since its founding in 1934, AG has leveraged its group buying power to facilitate the success of its over 320 customer locations. AG procures and distributes a comprehensive selection of fresh foods and traditional supermarket commodities including: grocery, meat, produce, deli, natural, specialty, ethnic, service deli, service bakery, health and beauty care, and general merchandise.
About Unified Grocers, Inc.
Founded in 1922, Unified Grocers, Inc. is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the Western United States. Unified and its subsidiaries, which generated approximately $3 billion in sales during fiscal 2006, offer independent retailers all the resources they need to compete in the supermarket industry.
The Unified Grocers, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1214
This press release contains forward-looking statements with respect to benefits expected to be derived from the proposed acquisition. There are a variety of factors which could cause actual results to differ materially from those anticipated by the statements above. These factors are outlined in Unified's Form 10-Q and other interim reports filed with the Securities and Exchange Commission. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.
(1) As part of an initiative to strengthen its corporate brand and
image in the marketplace, Unified Western Grocers recently changed
its name and is now doing business as "Unified Grocers." The
Company has begun to utilize Unified Grocers as its business name
for nearly all purposes and expects to effectuate a legal name
change after approval by its shareholders at Unified's next annual
meeting in mid-February, 2008.