Yucaipa Companies
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| Type | Private |
|---|---|
| Industry | Private equity |
| Founded | 1986 |
| Founder(s) | Ronald Burkle |
| Headquarters | Los Angeles, California, United States |
| Products | Leveraged buyout |
| Website | yucaipaco.com |
The Yucaipa Companies, LLC is a Los Angeles-based holding company, focusing on private equity investments. The firm was founded in 1986 by its billionaire chairman, Ronald Burkle.
Yucaipa has a history of highly successful leveraged buyout investments in supermarket and grocery chains beginning with Jurgensen's Markets in 1986. After several standalone investments in the late 1980s, Yucaipa went on to lead the consolidation of West Coast retail that occurred during the 1990s.
Most recently, Yucaipa acquired stakes in Colorado-based Wild Oats Markets, New Jersey-based Pathmark Stores, and Minnesota-based Supervalu, among others. Former US President Bill Clinton, a close friend of Burkle, was an advisor to the Yucaipa. From 2003 to 2006, Bill and Hillary Clintons' tax returns show total Yucaipa partnership income of $12.5 million. The 2007 summary provided by Hillary Clinton's Presidential campaign lists $2.75 million in partnership income.[1]
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[edit] Investment History
- 1987: Food 4 Less grocery franchise of Kansas City acquired for $35 million
- 1989: Boys Markets acquired for $375 million
- 1991: Alpha Beta California supermarket chain acquired for $271 million
- 1994: Smitty's Phoenix-based supermarket operator acquired for $138 million
- 1994: Ralphs Grocery Co. Southern California supermarket chain acquired for $1.5 billion
- 1997: Ralphs/Food 4 Less merged with Fred Meyer
- 1998: Fred Meyer sold to Kroger for $8 billion
- 1997: Ralphs/Food 4 Less merged with Fred Meyer
- 1995: Dominick's Chicago grocery store chain acquired for $750 million
- 1998: Dominick's sold for $1.85 billion to Safeway
- 1999: invests $3 million in GameSpy, and $25 million in Cyrk, Inc.
- 2004: TDS Logistics purchased by Yucaipa (according to TDS Logistics site [1])
- 2005: Yucaipa becomes the majority shareholder in Aloha Airlines in a $100 million bid to purchase the airline.
- 2009: Yucaipa doubles its stake in Barnes and Noble to 16.8% during e-reader War with Amazon.
- 2011: Stake acquired in The Great Atlantic & Pacific Tea Company
[edit] Aloha Airlines purchase
In February 2006, Aloha Airlines was taken into private ownership by Yucaipa Companies. After 61 years in business, passenger operations were suddenly shut down on March 31, 2008. Rising fuel prices, new competition for interisland travel, a tightening credit market, and dwindling interest by investors in the airline industry, were all cited as contributing factors.
In January 2011 Yucaipa won federal Bankruptcy Court approval to buy the Aloha name and other intellectual property for $1.5 million with a stipulation that it not resell the name to Mesa Air Group, the parent of go! Mokulele. It is unknown at this time what the furture plans are for the Aloha name.
[edit] Relationship with organized labor
Yucaipa has also shown a commitment to labor relations in many of its investments. Worker friendly practices and a willingness to engage with unions have proven to be effective tools in Yucaipa's investment strategy. Yucaipa has recently branched out into Employee Stock Ownership Plans (ESOP), with the creation of the American Working Capital group.[2]
[edit] References
- ^ Jim Kuhnhenn and Devlin Barret (04-05-2008). "Clintons Made $109 Million Since 2000". Associated Press. http://ap.google.com/article/ALeqM5gfd1crHwEDJCP-3_UVArM_pmEhYQD8VRMRS80.
- ^ American Working Capital
- The Yucaipa Companies, LLC (Business Week Profile)
- The Yucaipa Companies LLC (Yahoo! Profile)
[edit] External links
- The Yucaipa Companies (company website)
- The Yucaipa Companies (Crunchbase Company Profile)
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