AMERANT BANK PROVIDES FINANCING TO FRESCO RETAIL GROUP, LLC FOR THE ACQUISITION OF FRESCO Y MÁS OPERATIONS AND LOCATIONS

Rhea-AI Summary

Amerant Bank, the largest community bank in Florida, led a $120 million loan to Fresco Retail Group, LLC for the acquisition of Fresco y Más from Southeastern Grocers Inc. The acquisition includes 34 locations across South, Central, and Southwest Florida. The deal was closed successfully, and the business remains committed to maintaining its current operations.

Market Research Analyst

The acquisition of Fresco y Más by Fresco Retail Group, LLC, facilitated by a $120 million loan from Amerant Bank, represents a significant consolidation in the Florida grocery market. This move could potentially alter competitive dynamics, affecting market share distribution among regional players. Given the size of the loan and the complete acquisition of Fresco y Más portfolio, the deal is likely to have a material impact on the financials of both Fresco Retail Group and Southeastern Grocers Inc.

From a market research perspective, it's essential to evaluate how the acquisition might influence consumer choice and pricing in the market. Fresco y Más has established a strong presence in a niche market and its growth trajectory under the new ownership will be an important indicator of the effectiveness of the investment. Additionally, the integration of the stores and potential economies of scale could lead to improved margins and operational efficiency for Fresco Retail Group.

Financial Analyst

The financing of the acquisition by Amerant Bank underscores the bank's strategic commitment to supporting local businesses in Florida, which could enhance its reputation and relationships within the community. This deal could have implications for Amerant Bank's loan portfolio diversification and risk profile, considering the significant amount lent to a single borrower in the retail sector, which is known for its thin margins and high competition.

For investors and stakeholders, the short-term implications will likely revolve around the integration costs and how quickly Fresco Retail Group can leverage the newly acquired assets to generate positive cash flow. Long-term, the focus will be on the acquired stores' contribution to revenue growth and profitability. It will also be important to monitor how Southeastern Grocers reinvests the proceeds from this divestiture and whether it leads to a strategic refocus for the company.

Economist

The acquisition has broader economic implications for the Florida economy, particularly concerning employment and supply chain dynamics. The consolidation of grocery stores under a single owner might lead to job restructurings or changes in supplier contracts, which could have ripple effects throughout the local economy. Moreover, the deal reflects a broader trend of consolidation in the retail industry, which can have both positive and negative effects on consumer prices and product diversity.

It will be important to assess whether this acquisition leads to increased market power for Fresco Retail Group and how this might affect competitors and consumers in the long run. Additionally, the impact on small and local suppliers should be considered, as larger chains often have the bargaining power to negotiate more favorable terms, potentially squeezing smaller players in the supply chain.

$120 million loan secures acquisition of Fresco y Más to acquire stores and locations from Southeastern Grocers Inc.

CORAL GABLES, Fla., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Amerant Bank, the largest community bank headquartered in Florida, led the financing of a $120 million loan to Fresco Retail Group, LLC, an investment group strategically focused on food and grocery, for the acquisition of Fresco y Más from Southeastern Grocers Inc. (SEG).

The transaction encompasses the entire Fresco y Más portfolio. As a Florida-based grocery chain founded in 2016 in Hialeah, Fla., Fresco y Mas offers food and grocery goods at compelling values. With 34 locations across South, Central, and Southwest Florida – including 28 stores and 6 liquor stores the business has established itself as a prominent player in the industry.

"We have been collaborating closely with the Fresco Retail Group, and today, we are excited to announce the successful closing of this deal," said Matthew Bruno, EVP, Miami-Dade Market President, Amerant Bank. "Fresco y Más boasts an excellent market footprint in South Florida, and we look forward to supporting their growth as part of a strong long-term relationship together."

TA PLLC Co-Managing Partner Javier A. Alvarez led the firm’s legal representation of Amerant Bank in the transaction and was assisted by Erika L. Porrino and Steven Ross. Ezra Katz, Founder and CEO of Aztec Group, played a key advisory role in facilitating the deal on behalf of Fresco Retail Group. In August 2023, Southeastern Grocers entered into a definitive agreement to divest its Fresco y Más operations to Fresco Retail Group, LLC.

Fresco Retail Group, LLC remains committed to maintaining the current operations of all supermarkets and liquor stores under the Fresco y Más banner.

For more information about Amerant Bank, visit amerantbank.com and follow on Facebook, Twitter, Instagram and LinkedIn @AmerantBank.

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For more information, please contact: info@frescoretail.com.

About Amerant Bank
Amerant Bank, N.A., is the largest community bank headquartered in Florida and the main subsidiary of Amerant Bancorp Inc. (NYSE: AMTB), with a presence across South Florida and in Tampa, FL, and Houston, TX. The bank has been serving clients for over 40 years and comprises subsidiaries Amerant Investments and Amerant Mortgage. Rooted in the communities it serves, Amerant supports numerous non-profit and community organizations. In 2023, the company was certified as a Most Loved Workplace® by Best Practice Institute. For news and updates, visit the Amerant Newsroom.

What was the loan amount for the acquisition of Fresco y Más?

Amerant Bank led a $120 million loan for the acquisition.

How many locations are included in the acquisition?

The acquisition includes 34 locations across South, Central, and Southwest Florida.

Who facilitated the deal on behalf of Fresco Retail Group?

Ezra Katz, Founder and CEO of Aztec Group, played a key advisory role in facilitating the deal.

When did Southeastern Grocers enter into a definitive agreement to divest its Fresco y Más operations?

In August 2023, Southeastern Grocers entered into a definitive agreement to divest its Fresco y Más operations to Fresco Retail Group, LLC.