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Lowes Foods Completes Acquisition of Foothills IGA Market and Expands Into Georgia
North Carolina-based supermarket chain Lowes Foods expands into Georgia through the acquisition of local grocer, Foothills IGA Market
Lowes Foods, an American supermarket chain based in North Carolina, completed the acquisition of Foothills IGA Market, a retail supermarket based in Georgia, on September 5, 2023. The acquisition was announced on May 5, 2023, and has been finalized. Foothills IGA will be Lowes Foods’ first location in Georgia.
Transaction Summary
Our Take on the Acquisition
Lowes Foods (acquirer) has acquired Foothills IGA Market (target) to expand geographically into Georgia. Currently, Lowes Foods has retail locations in North Carolina, South Carolina, and Virginia. The Foothills’ location in Georgia is not expected to strain Lowes Foods distribution since its parent company, Alex Lee, also operates as a wholesale distributor, which Lowes can utilize to service the new location. Expanding through acquisition in an enjoining state makes sense for Lowes Foods in terms of growth, and the addition of Foothills IGA Market may be a stepping stone for a more extensive expansion in the Southeastern United States. As the company continues to expand, Lowes Foods is expected to acquire more independent grocers and smaller supermarket chains across the region.
The Facts of the Acquisition
- Target: Foothills IGA Market is a family-owned independent grocery retailer. It has been serving the community of Marble Hill, Georgia since 2002 through its primary location.
- Acquirer: Lowes Foods is a supermarket chain with over 80 locations in North Carolina, South Carolina, and Virginia. It is a subsidiary of Alex Lee, which also owns Merchant Distributor, a wholesale distributor for supermarkets, and Just Save, a supermarket chain in North Carolina.
The Transaction
| Date: | September 5, 2023 |
| Price: | Undisclosed |
| Purpose: | To expand geographically into Georgia, United States |
| Acquirer’s Statement: | Tim Lowe, Lowes Foods President – “We’re excited about the possibility of adding another great store location to our company. We will have more news to share soon. In the meantime, the store will continue to operate as IGA.” |
Target/Seller: Foothills IGA Market
Company Information
| Target: | Foothills IGA Market |
| Website: | foothillsiga.com |
| Founded: | 2002 |
| Industry: | Retail (Supermarket) |
| Type: | Private |
| Employees: | 7 (Self-published on LinkedIn) |
| Locations: | Primary Location: 70 Foothills Parkway Marble Hill, Georgia, United States |
Product Information
| Products: | Baked Goods – Flour-based food that is oven-baked Dairy – Milk and other products derived from milk Deli – Ready-to-eat foods such as cooked meats and prepared salads Frozen Foods – Items frozen to increase shelf life General Grocery – General items for daily use and consumption Meat – Beef, pork, chicken, and seafood Fresh Produce – Farm-produced crops, including fruits and vegetables Snacks – Packaged and processed food in small portions Liquor – Alcoholic drinks and spirits |
| Market Reach: | Georgia, United States |
Financial Information
| Revenue: | USD $5.0 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | USD $714,286 (i.e., USD $5.0 million / 7 employees = USD $714,286 – estimated based on the self-published number of employees and revenue from ZoomInfo) |
Did You Know?
According to the National Grocers Association, independent grocers account for a third of overall grocery sales in the United States, exceeding $250 billion, and have shown more significant growth than supermarket chains. Independent community grocers profoundly impact local economies and community growth, accounting for more than 1.1 million American jobs. Also, sourcing their products from nearby farms, suppliers, and local businesses fosters a sense of belonging and pride among consumers, knowing that their purchases positively impact the region they call home.
Target/Seller Overview: Foothills IGA Market
Foothills IGA Market is an independent grocery retailer based in Georgia. It has been selling food and general grocery items to consumers in the Marble Hill area since 2002. The store was owned by Jeff and Sandy Downing, local residents who wanted to sell and retire.
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Explore Your Options NowBuyer/Acquirer: Lowes Foods
Company Information
| Buyer: | Lowes Foods |
| Website: | lowesfoods.com |
| Parent Company: | Alex Lee, Inc. |
| Founded: | 1954 |
| Industry: | Retail (Supermarket) |
| Type: | Subsidiary |
| Employees: | 9,000 (Source: Company profile) |
| Locations: | Head Office: 1381 Old Mill Circle, Winston-Salem, North Carolina, United States North Carolina Retail Locations: 63 South Carolina Retail Locations: 17 Virginia Retail Location: 1 |
Product Information
| Products: | Baked Goods – Flour-based food that is oven-baked Dairy – Milk and other products derived from milk Deli – Ready-to-eat foods such as cooked meats and prepared salads Frozen Foods – Items frozen to increase shelf life General Grocery – General items for daily use and consumption Meat – Beef, pork, chicken, and seafood Fresh Produce – Farm-produced crops, including fruits and vegetables Snacks – Packaged and processed food in small portions Liquor – Alcoholic drinks and spirits |
| Market Reach: | North Carolina South Carolina Virginia |
Financial Information
| Revenue: | USD $1.9 billion (Unconfirmed source: ZoomInf0) |
| Revenue per Employee: | USD $211,111 (i.e., USD $1.9 billion / 9,000 employees = USD $211,111 – estimated based on the number of employees from the company’s profile and revenue from ZoomInfo) |
Buyer/Acquirer Overview: Lowes Foods
Lowes Foods is an American supermarket chain founded in 1954 in North Carolina. It has over 80 full-service supermarkets in North Carolina, South Carolina, and Virginia. The chain initially grew in the rural areas of North Carolina but has expanded to the metropolitan areas of North and South Carolina.
Lowes Foods is a subsidiary of Alex Lee, Inc., a family-owned and operated company based in North Carolina. It is also the parent company of Merchant Distributors, a provider of full-service, wholesale distributors to supermarkets across the Southeastern United States, and of Just Save, a food retailer in North Carolina.
Sources
- Company Profile
- foothillsiga.com
- lowesfoods.com
- Other Sources
- https://www.supermarketnews.com/retail-financial/lowes-foods-acquires-foothills-iga-market-georgia
- https://smokesignalsnews.com/news/foothills-iga-market-enters-into-non-binding-agreement-to-sell-store-to-lowes-foods/article_4dd17df2-eb86-11ed-ad81-07e5c329759a.html
- https://www.supermarketnews.com/retail-financial/independent-supermarkets-drive-one-third-us-grocery-sales
- https://www.nationalgrocers.org/news/independent-grocers-are-mighty-contenders-in-the-evolving-grocery-landscape/
- Unconfirmed Sources
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