Smart & Final to Buy Cash & Carry Stores

Smart & Final Inc. said it will buy United Grocers Inc.’s 39 Cash & Carry grocery warehouse stores, which are located in Northern California, Oregon, Idaho and Washington. Terms were not disclosed. Los Angeles-based Smart & Final operates 174 stores in California, Arizona, Nevada, Florida and northern Mexico. “The Pacific Northwest is a very appealing area, but one that we have not entered because of UG’s excellent network of warehouse stores,” said S&F; Chief Executive Robert Emmons. The transaction includes a purchasing and distribution agreement under which closely held UG will continue to serve the acquired stores. The transaction is expected to be completed at the end of the month. Smart & Final had 1997 revenue of $1.45 billion, while Portland, Ore.-based United Grocers’ Cash & Carry unit had $245 million in revenue. Smart & Final shares fell 6 cents to close at $19.94 on the NYSE.