By George Anderson
Fleming has accepted Roundy's offer of $82.5 million for 31 Rainbow Foods stores in the Minneapolis - St. Paul area. Roundy's will also pick up the leases on the Rainbows Foods locations for another $36 million.
The deal will now have to be presented by Fleming to a Chapter 11 bankruptcy court judge who will decide to accept Roundy's offer or entertain other bids.
Moderator's Comment:What will a Roundy's purchase mean to the Rainbow Foods stores? Does Roundy's purchase of the 31 Rainbow Foods stores mean it is out of the running to buy Dominick's?
We wouldn't bet on Roundy's being out just yet. The Rainbow Foods purchase will put the wholesaler/retailer in the top 25 chains in the nation. Landing Dominick's would increase its leverage with suppliers that much more. Fortunately, with Bob Mariano at the helm, this won't be another deal where efficiency goals come at the expense of sales effectiveness. [George Anderson - Moderator]
- Rainbow offer adds up - Pioneer Press
- Roundy's bid for Rainbow could jump-start competition - Star Tribune
- Trying to bag Twin Cities, Roundy's entering market, buying 30 Rainbow stores - Milwaukee Journal Sentinel