EMERYVILLE, CA—Grocery Outlet, Inc., an “extreme-value” grocer based here, has entered into a definitive agreement to be acquired by affiliates of Hellman & Friedman LLC along with Grocery Outlet's senior management team from its principal owner, Berkshire Partners LLC. The terms of the transaction were not disclosed.

“Grocery Outlet's unique operating model delivers tremendous value to consumers and suppliers alike,” said Erik Ragatz, managing director of Hellman & Friedman. “With a network of high quality independent operators and an outstanding base of employees, Grocery Outlet is very well positioned to continue on its growth trajectory.”

Grocery Outlet offers branded grocery products at significant discounts through a unique sourcing model of purchasing discounted surplus inventory directly from over 3,000 supplier partners. The company was founded in 1946 by Jim Read and continues to be operated by the Read family, with third-generation family members MacGregor Read and Eric Lindberg currently leading the business as Co-Chief Executive Officers. Grocery Outlet has a network of more than 210 stores across six states, which are managed principally by local, independent operators.