Modesto-based Save Mart Supermarkets sold to Los Angeles private equity firm
Modesto-born Save Mart Supermarkets has been bought by a Los Angeles-based private equity firm, ending 70 years of Central Valley ownership of the popular grocery chain.
The Save Mart Companies — which includes Save Mart, Lucky California, and FoodMaxx grocery stores — was acquired by Kingswood Capital Management LP. The two companies announced the news Monday morning in a joint statement.
Kingswood called itself an “operationally focused” firm that was expanding its Northern California presence with the purchase. The company acquired Alameda-based Cost Plus World Market in January 2021.
The Save Mart Companies have approximately 200 stores across Northern California and Northern Nevada, and has had its company headquarters in Modesto since its founding in 1952. The company also operates SMART Refrigerated Transport and is a partner in Super Store Industries, which owns and operates a distribution center in Lathrop, and the Sunnyside Farms dairy processing plant in Turlock.
“I’m excited for this opportunity with Kingswood to invest in and grow The Save Mart Companies family of stores,” said Chris McGarry, the new CEO of The Save Mart Companies who took over the role in 2021. “The Piccinini family did a tremendous job in fostering a commitment to innovation and service as they built and grew this company in the Central Valley and throughout California.....While this change in ownership will be transparent to our team and customers, we know that this investment will benefit them and the communities we serve.”
Save Mart has some 14,000 employees across its stores, and sources many of its product locally through partnership with the valley’s abundant ag industry.
The grocery chain was started by brothers-in-law Nick Tocco and Mike Piccinini in Modesto. Piccinini’s son, Bob Piccinini, bought the company from family members in 1985 and stewarded the business through its expansion to include the FoodMaxx and Lucky brands before his passing in 2015. His daughter, Nicole Pesco, took over as the company’s sole CEO in 2016.
Kingswood founder and managing partner Alex Wolf said in a written statement about the acquisition he hoped to help Save Mart grow into the future. According to its website, The Save Mart Companies makes over $4 billion in sales annually. The company has 10 Save Mart Supermarkets and three Food Maxx grocery stores in Stanislaus County currently.
“At Kingswood, our goal is to make good businesses even better, and The Save Mart Companies presents us with a great opportunity to do so,” he said. “Their 70 years of history in the Central Valley provides a strong foundation for future profitable growth, and we look forward to working with Chris and the team to position these iconic grocery brands for the future.”
Before its sale, The Save Mart Companies was the largest family-owned grocer in California.
This story was originally published March 28, 2022 at 10:27 AM with the headline "Modesto-based Save Mart Supermarkets sold to Los Angeles private equity firm."
