Brookshire Grocery Company is exploring a sale that could value the family-owned operator of supermarket stores in Texas, Louisiana and Arkansas at as much as $1 billion, including debt, according to people familiar with the matter.
The move underscores a trend toward consolidation in the fragmented U.S. supermarket sector, as companies respond to low profit margins by seeking economies of scale through acquisitions.
Brookshire is working with investment bank JPMorgan Chase & Co (JPM.N) on an auction that has attracted larger peers, including Albertsons Companies Inc (ABS.N), the people said this week.
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