Maison Solutions, a chain of Asian specialty supermarkets in California, has acquired Lee Lee Oriental Supermart, a three-unit chain in the Phoenix, and Tucson, Ariz., areas operating under the Lee Lee International Supermarkets banner.
The purchase price was $22.2 million, including $7 million in cash and the rest to be paid over a 10-month period through a secured note agreement.
Maison Solutions, which is publicly traded on the Nasdaq stock exchange, said the acquisition would add $70 million to its annual revenues, effectively doubling its size.
“This transaction demonstrates our strategy of expanding by acquisition in geographic locations with large and growing Asian and ethnic populations," said John Xu, president and CEO of Maison Solutions. “Lee Lee International Supermarkets has an established brand presence in Arizona and is a perfect fit for Maison, giving us a base for further growth in the region.”
Maison Solutions currently operates six stores in Southern California, including five under the HK Good Fortune Supermarket banner and one operating as Dai Cheong Trading.
The acquired locations include:
- A 52,000-plus-square-foot store in Chandler, near Phoenix, that includes a Vietnamese restaurant, a bakery, and a jewelry store
- A 60,000-plus-square-foot store in Peoria, also near Phoenix, that also includes a Vietnamese restaurant, a boba tea store, a jewelry store, and a clothing store
- A 51,000-plus-square-foot store in Tucson that includes a Vietnamese restaurant and a BBQ restaurant
Founded more than 30 years ago, Lee Lee offers products from more than 30 countries, according to Maison Solutions.
In its fiscal third quarter reported last month, Maison Solutions said it lost $535,556 for the period, on about $13.6 million in revenues. Those figures compare with net income of about $1.2 million on revenues of $15.6 million in the year-ago third quarter.
The company attributed the decline in performance to competition from two newly opened Asian supermarkets near the company’s San Gabriel store, the end of certain COVID-19 customer relief programs, and a slow-down at the Company's El Monte store during its renovation.
For the nine-month span, Maison Solutions reported a loss of $470,802 on revenues of $41.1 million, vs. net income of $1.2 million on revenues of $41.2 million in the year-ago period.
"We continue to make considerable operational progress through store renovations, new store openings, and acquisitions of additional stores to efficiently grow our footprint," said Xu.
He also said the company was on schedule to open its flagship 37,000-square-foot store in Rowland Heights, Calif., later this year.
