If the deal goes through, Albertsons will significantly boost its presence in the U.S. Northeast where Price Chopper already has market presence. The move could help Albertsons fight off online retail giants such as ALDI Inc., Amazon.com Inc. and Wal-Mart Stores Inc.
According to sources familiar with the matter at hand, U.S. supermarket chain Albertsons Companies Inc. has engaged Price Chopper in advanced talk for a takeover. The deal is valued at over $1 billion.
The upcoming deal only goes to underscore the wave of consolidation sweeping across the U.S. grocery industry. Regional grocery chains have struggled to compete with giants such as Wal-Mart Stores Inc. and Amazon.com Inc.
The spate of M&A has put increased pressure on the Golub family which has owned Price Chopper for more than 80 years.
Price Chopper was founded by Lewis Golub, a Russian immigrant who arrived in New York in the 1900s and started a wholesale grocery warehouse in 1922. In 1932, his two sons launched the supermarket chain.
Schenectady, New York, based Price Chopper operates nearly 130 stores across the U.S. Northeast, including Massachusetts, New York and Connecticut.
Earlier this year, Scott Grimmett took over the reins at Price Chopper from Jerry Golub. He is the first non-family member to hold the position of CEO.
Sources preferred the cover of anonymity since the matter is confidential. They have cautioned against jumping to conclusions since the advanced talks have yet to be concluded and it is still possible that the deal could fall through during negotiations.
Both, Price Chopper and Albertsons and declined to comment.