The Save Mart Companies — which includes grocery banners Save Mart, Lucky California and FoodMaxx — has undergone its second change of hands in two years, with multiple sources reporting that the conglomerate has been acquired by Canadian holding company The Jim Pattison Group.
In 2022, the Piccinini family sold Save Mart Cos. to LA-based private equity firm Kingswood Capital Management for an undisclosed amount. But that deal hit a snag just three months after the papers were signed, according to The Financial Times, which reported that through some “ballsy lawyering and nebulous bookkeeping,” Kingswood ended up demanding the family pay it $109 million, $77 million more than it paid to acquire the company. The case has wound its way through the courts over the past couple of years, with the Delaware Court of Chancery reportedly confirming Kingswood’s arbitration award on Feb. 28, 2024 in a decision that left many in the private equity deal community “gobsmacked,” according to Business Law Today.
Now Kingswood appears to have offloaded its controversial asset to the Jim Pattison Group, which operates across a range of industries including automotive, advertising, media, agricultural equipment, food and beverage, entertainment and real estate. The Pattison Food Group division operates a number of retail banners including Save-On-Foods and Buy-Low Foods. Financial terms of the Save Mart Cos. acquisition were not disclosed.
Following the acquisition, the Save Mart Cos. will remain headquartered in Modesto, Calif., and executive chairman Shane Sampson will stay on in his current role, according to The Canadian Grocer.
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“Our primary focus continues to be serving our associates, our customers and our local communities by providing the freshest quality products at a great value,” said a Save Mart representative in a statement shared with The Canadian Grocer. “Our next chapter is primed for long-term, sustainable growth and innovation and we have full faith in a bright and enduring future.”
