Houchens to buy Stewart and Richey

Published 12:00 am Monday, September 11, 2000

A southcentral Kentucky company that started as a small grocery retailer and grew is getting a bit bigger still. Houchens Industries will buy Stewart and Richey Construction Co. of Bowling Green for an undisclosed sum, said Mark Iverson, chief financial officer for Houchens. The deal, which is expected to be finalized by Oct. 1, will bring Houchens Industries employment to 5,300 people in 10 states. Weve got 38 Houchens markets, 44 Jr. Food Stores and 159 Save-A-Lot stores, Iverson said. That is a lot of outlets for equipment, construction jobs and just regular maintenance. From our perspective, we can get some benefit (from the merger) by working together on those items. And they will get benefit as well. Venus Popplewell, Houchens advertising director, sees the merger as a good move for the employees who have owned the company since 1988.It is unusual for a grocery chain to buy a construction company, she said. But it is a good idea to generate investments for the company that are worth a good deal. Stewart and Richey will continue to run its 14 divisions as it is doing, President Buster Stewart said. The first real public evidence that Houchens Industries was diversifying came in with its 1998 purchase of Southern Recycling. The company, valued at $150 million a year ago, also has several real estate holdings. Iverson said Houchens continues to evaluate other possible merger and acquisition opportunities. The Stewart and Richey merger adds another great local company to the diversification efforts of Houchens Industries Inc., said Jimmie Gipson, chairman of the board of Houchens Industries.

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