Thursday, April 29, 2004

The Bowling Green-based Houchens Industries it has agreed to purchase Food Giant supermarkets.
Headquartered in Sikeston, Mo., Food Giant operates 90 conventional supermarkets in eight midwestern states primarily under the Piggly Wiggly and Food Giant names. The Piggly Wiggly in Franklin is not affected by the sale because it is privately owned. Several former Piggly Wiggly supermarkets in western Kentucky, including those in Elkton and Princeton, are involved in the deal.
Houchens owns one Save-A-Lot store in Franklin.
Terms of the acquisition have not been released. Completion of the purchase, scheduled to occur by July 3, is contingent on the negotiation of definitive agreements and an independent appraisal of the two companies’ stock.
Both companies are employee-owned. Houchens has about 8,000 employees, while Food Giant has about 2,500. Both companies are among the nation’s largest 100 companies that are at least 50 percent or more employee owned. Houchens, which has diversified into several other businesses over the past five years, is among the top 20 on the list.
Houchens, which owns stores in 13 states from eastern Texas to New York, reports annual sales of $1.5 billion. Among Houchens owned businesses are some 200 Save-A-Lot stores, 31 supermarkets in Kentucky under its own name, 40 Jr. Foods convenience stores and 23 Tobacco Shoppe discount cigarette outlets mostly in Kentucky and Tennessee.
In 2001, Houchens purchased discount cigarette manufacturer Commonwealth Brands from Brad Kelley of Franklin. Commonwealth Brands makes USA Gold, the top generic cigarette brand.
Houchens is also involved in recycling, warehousing and insurance.
Food Giant has annual sales of about $400 million.
A Houchens official says Food Giant will continue to be operated by current management after the acquisition.
The two companies reportedly have been in contact for about five years.
Piggy Wiggly of Franklin was bought by current owners Ronnie Porter and Mike Reese about eight years ago. It employs 44.