Grocery Outlet Holding Corp. (NASDAQ:GO) has successfully completed its acquisition of United Grocery Outlet (UGO), initiating a significant expansion into the Southeastern United States.

The $62 million deal, finalized on April 1, 2024, brings UGO's extensive network of 40 stores and a distribution center under Grocery Outlet's banner, marking a strategic move into Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia.

This acquisition not only broadens Grocery Outlet's geographical footprint but also solidifies its position in the discount grocery market by incorporating UGO's established operations and market penetration in the Southeast.

RJ Sheedy, President and CEO of Grocery Outlet, expressed enthusiasm about the acquisition, highlighting the synergies between the two companies, including their opportunistic buying strategies and strong value propositions.

Sheedy emphasized the seamless fit of UGO into Grocery Outlet's business model and the potential for accelerated growth and expansion in new markets.