Terms of the transaction were not disclosed, nor would the company indicate to SN what the “next phase of growth” might entail.
Grocery Outlet’s principal owner for the past five years has been Berkshire Partners, Boston.
With sales approaching $2 billion, Grocery Outlet operates 214 stores in California, Idaho, Nevada, Oregon, Washington and Pennsylvania. An additional store is scheduled to open Thursday in Spokane Valley, Wash.
The 16 stores in Pennsylvania operate under the Amelia’s Grocery Outlet banner, though the stores are in the process of being converted simply to Grocery Outlet — an undertaking expected to be completed early next year, the company noted. It was with the financial help of Berkshire that the company was able to expand through an acquisition into Pennsylvania in early 2012, industry sources pointed out.

Grocery Outlet, which relocated from Berkeley to Emeryville in May, offers branded grocery products at discount prices, with stores managed principally by local independent operators. It was founded in 1946 by Jim Read, with third-generation family members MacGregor Read and Eric Lindberg serving as co-CEO’s.
Hellman & Friedman is an investment firm that says it focuses on “superior business franchises.” Its holdings cross many industries, encompassing marketing and information services — including Nielsen and Catalina Marketing — media, software, insurance, financial services, energy and health care.

According to Erik Ragatz, managing director of Hellman & Friedman, “Grocery Outlet’s unique operating model delivers tremendous value to consumers and suppliers alike [and] is very well positioned to continue on its growth trajectory. We look forward to partnering with Eric and MacGregor and the rest of the management team as the company moves into its next phase of growth.”
Chris Hadley, managing director of Berkshire Partners, said his company was proud to have worked with Grocery Outlet’s management team “to enhance its capabilities and to grow its store base. We look forward to seeing the next stage of the company’s development.”