Private equity firm TPG Capital has closed a $394 million deal for Arden Group Inc., which owns Gelson's markets.
Gelson's, headquartered in Encino, Calif., operates 17 specialty grocery stores in southern California. The purchase price for the grocery chain was $126.50 per share. Before the deal was announced in December, the company's shares were trading at close to $126.
Under TPG's ownership, Gelson plans to expand. A new store is currently slated to open in La Canada Flintridge, Calif., at the end of March.
TPG is a private equity firm headquartered in Forth Worth, Texas, that has almost $56 billion in capital under management. The Gelson's deal follows TPG portfolio company Par Pharmaceuticals Inc.'s purchase of JHP Group Holdings, a pharmaceutical company, in January.