LOS ANGELES-Global private investment firm TPG has completed the acquisition of Arden Group Inc., the parent company of Gelson's Markets. The all-cash transaction is valued at $394 million.

Arden Group will no longer trade on the NASDAQ, and will give shareholders $126.50 for each share of common stock held, per the merger agreement the board of directors approved in December 2013. These prices are 26% and 14% premiums of the company's average closing prices. "With TPG's retail experience and financial support, we are confident that we can profitably grow Gelson's, and we are excited to embark on this new phase for the company," says Rob McDougall, Gelson's Markets president and CEO.

Under TPG leadership, Gelson's will open a store at the end of March at La Cañada Flintridge, a 100,408-square-foot shopping center that currently houses a Vons supermarket. Retail Opportunity Investment Corp. purchased the shopping center for $35.9 million late last year, and made an arrangement to replace the Vons shopping center with a Gelson's Market in the anchor location. The new owners believe Gelson's will better serve the area's high-income households.