Grocery Wholesalers Agree to Merge

Commerce-based grocery wholesaler Certified Grocers of California has agreed to merge with Milwaukie, Ore.-based United Grocers in an effort to boost the company’s clout in the rapidly consolidating supermarket business. Terms of the deal were not disclosed. The two chains supply independent grocery and convenience stores on the West Coast. Certified has annual sales of $1.8 billion and United has sales of $1.2 billion. Company officials say the merger will allow the new entity to negotiate better deals for its retail store owners. “Consolidation [in the supermarket industry] brings about cost savings and now our independent retailers can do the same,” said Terry Olsen, president of United Grocers. The boards of both companies have selected Certified Grocers President Alfred A. Plamann to head the combined company. The merger is expected to be completed in June, subject to shareholder and regulatory approval.