Harris Teeter on Track for Record Takeover Valuation
The US grocery store chain Harris Teeter Supermarkets have boasted that it has increased its sales every year in the past decade. It is now poised to have the highest takeover valuation in the industry since 2007.
The current net worth of the retailer is at US$2.1 billion and has recently engaged the services of JP Morgan Chase & Co to act as advisor after two potential bidders have come to the company seeking to invest. The private equity firms are Royal Ahold NV(AH) and Peapod. The former is the Dutch owner of Stop and Shop while the latter is a retailer in the Northeastern United States.
Because the company is very well-run and its store base is continuously growing with higher profit margins compared to its rivals, then the valuation for the firm would definitely be higher. Some analysts say that the share value can be at US$55 per, which is well above its value at the closure of market trading.
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