Bank Prepares for Possible Ukrop’s Sale

Rachel DePompaRachel DePompa – bio | email 

UPDATE: (Posted September 10th, 4:30pm)

Harris Teeter has been granted another extension in King George County where its planning to build a 101 million dollar distribution center. This is the grocer’s fifth extension. It’s notable because Harris Teeter was reportedly outbid for Ukrop’s last month by another grocer. It’s long been rumored the distribution center in King George was a precursor to buying the Ukrop’s chain. The company now has until November 6th to do “due diligence” on the project. (Basically that means Harris Teeter has until November 6th to decide whether or not to continue with the project.)

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So, the Ukrop’s rumor mill is about to blow up again. It looks like Union Bankshares Corporation believes Ukrop’s could be sold. Union Bankshares is buying First Market Bank.  (25 of the bank’s 39 branches are in Ukrop’s stores) In a filing with the Securities and Exchange Commission, Union Bankshares told investors it has considered the potential impact of a sale in structuring its offer for First Market Bank. (The Ukrop’s family owns First Market) The company is even taking steps “to ensure that the 25 branches of the bank that are located in Ukrop’s grocery stores will be able to continue to operate under the terms of their current long term master license agreement.”

It appears Union Bankshares is preparing for a sale. The first real evidence we’ve received that the sale is real possibility. And I got to tell you “Lowes” is popping up even more than “Harris Teeter” in my in-box these days. Keep your tips coming! Let me know if you hear anything!

 Here’s a link to the filing. (Be warned it’s 85 pages LOOOOONG!)

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1 Comment

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One response to “Bank Prepares for Possible Ukrop’s Sale

  1. AP

    This is not evidence at all. It is common business sense to evaluate all of your risk factors whenever you make a stock public. Ukrop’s has been rumored to be sold for at least a decade, so Union Bankshares would be crazy not to consider it along with many other risk factors.

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