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H-E-B Buys Out Albertsons in Austin

H.E. Butt Grocery last week said it will buy five stores in the Austin and Round Rock, Texas, market from Albertsons LLC. Three of the locations will be converted into H-E-B stores. Two of the locations, which had already been closed by Albertsons, will not reopen, H-E-B said. The stores represent all the remaining Albertsons locations in the Austin-Round Rock market and will increase

SAN ANTONIO — H.E. Butt Grocery here last week said it will buy five stores in the Austin and Round Rock, Texas, market from Albertsons LLC.

Three of the locations will be converted into H-E-B stores. Two of the locations, which had already been closed by Albertsons, will not reopen, H-E-B said. The stores represent all the remaining Albertsons locations in the Austin-Round Rock market and will increase H-E-B's presence in that region to 45 stores.

Financial terms were not disclosed.

Under terms of the deal, Albertsons will continue to operate the open stores until early November. H-E-B said it plans to have locations in Round Rock and northwest Austin reopen as H-E-B stores in early December. The third store, in West Lake Hills, requires more extensive renovation and will reopen in February, H-E-B said.

“Central Texas is growing fast, and this is part of our long-term plan to keep up with that growth,” Jeff Thomas, senior vice president and general manager of H-E-B's Central Texas region, said in a statement. “We've been wanting to serve these neighborhoods for a long time, and now we're looking forward to bringing them our lower prices, fresh foods and quality products.”

According to Metro Market Studies, Tucson, Ariz., H-E-B already captures about 47% of the Austin grocery market with multiple formats, including two Central Market locations and an H-E-B Plus supercenter.