04.23.02
The Food Partners Assists Ramey's in the Acquisition of Eight Albertson's Stores
Investment banking firm's strategic and financial advisory services essential in helping the privately held, family-operated grocery retailer consolidate its existing markets and expand into new markets, says CEO.

April 23, 2002, Washington, DC – The Food Partners (TFP), a national investment banking firm focusing exclusively on the food chain, said today that it advised Springfield, MO-based Ramey/Price Cutter (Ramey) in the acquisition and financing of eight retail grocery stores from Boise, ID, grocery store retailer Albertson's [NYSE: ABS].

The transaction, which closed on April 22, involved the purchase of eight stores in southwestern Missouri previously owned by Albertson's, including stores in Springfield, Joplin, Nixa and Waynesville. Together, these stores are expected to increase Ramey's annual sales by approximately 50 percent.

"We are pleased to be able to have our banners -- Price Cutter, Ramey and Smitty's -- on these new locations, and we couldn't have done it without TFP's help," said Erick Taylor, Ramey's president and chief executive officer.

"During the five-plus years that we have been associated with TFP, we have found their strategic advice in connection with the retail grocery industry unsurpassed. In terms of this transaction specifically, TFP's assistance in analyzing, negotiating and documenting the deal was essential," said Richard Cohen, president of Roswil, the parent company of Ramey.

"Just as importantly, TFP's thorough understanding of the industry's funding sources and financing structures was a key element in the ultimate success of this acquisition," he added.

The Ramey acquisition resulted from Albertson's decision to exit the southwest Missouri market, which was announced on March 5. Subsequently, Albertson's announced it would vacate markets in Houston, TX, Memphis, TN, Nashville, TN and San Antonio, TX.

"While these decisions are never easy, we had an opportunity to sell these (southwest Missouri) stores to a strong buyer with an excellent reputation. We are confident Ramey will create a smooth transition that will benefit the affected communities," said Larry Johnston, Albertson's chief executive officer and chairman of the board.

Albertson's is one of the world's largest food and drug retailers, with annual revenues of approximately $38 billion. Based in Boise, ID, the Company employs more than 220,000 associates and operates more than 2,400 retail stores in 33 states.

Ramey was founded in 1919, when John Ramey used his "mustering out" pay from the U.S. Army to buy his first small neighborhood market in Springfield, MO. Today, Ramey is a privately held, family-operated chain of 32 stores and approximately $300 million in sales (post acquisition) located across southwestern Missouri, primarily operating under the Ramey and Price Cutter banners.

The Food Partners, with offices in Washington, DC, and Seattle, WA, is a national investment banking firm focusing exclusively on the food chain and its capital sources. TFP provides merger, acquisition, divestiture, capital raising, strategic advisory and loan portfolio services to the food industry. Clients served by TFP span the entire food chain with a particular emphasis on private middle market companies and cooperatives.