Over the past three years, LeBlanc’s Food Stores had been increasing its footprint in south Louisiana and upgrading its supermarkets. In late 2013, the Gonzales-based chain launched a new high-end concept store, Frais Marché, which emphasized more fresh, prepared foods. In 2014, it reached an agreement to take over the old Hi Nabor store in the Drusilla Village Shopping Center and in 2015 opened an expanded, 35,000-square-foot store.
In other words, it didn’t appear to be a company looking to get out of the business it has been in for more than half a century.
But owner Randy LeBlanc, whose grandfather opened the first LeBlanc’s in 1961, says he’d been thinking about his long-term exit strategy for a couple of years. He’d even talked to his brother in 2014 about buying him out, though that idea didn’t pan out.
Then, early this year Donny Rouse, managing partner of Thibodaux-based Rouses Markets, approached LeBlanc about selling. He says the two went back and forth for most of the past year, about eight or nine months. The deal, LeBlanc says, was ultimately too good to refuse.
“It was fair and equitable,” he says. “Obviously, we’re a little biased but we think they’re getting a good deal, too.”
The deal, terms of which are not disclosed, was announced in a press release Saturday. It’s expected to be finalized later this month.
Once complete, the acquisition will make Rouses the largest Louisiana-based supermarket chain in the state, with 54 locations, including 11 in the Capital Region.
For his part, Rouse says he wanted to increase his company’s footprint in Baton Rouge. The chain moved into the market in 2015 and now has two, newly constructed stores. In late August—just two weeks after the Juban Crossing store in Livingston Parish was flooded—Rouses’ first Baton Rouge location opened at Long Farm Village on Airline Highway. The Juban Crossing location is expected to reopen later this year. LeBlanc’s, Rouse says, was a good fit both because of its product offerings and its locations.
“They have fantastic locations and we felt this was a perfect fit with our footprint,” Rouse says. “And it still gives us the opportunity to build some ground up stores in Baton Rouge.”
Though the Baton Rouge grocery store market is extremely competitive with several strong independent, family-owned stores as well as several national chains—including Whole Foods, Trader Joe’s and Fresh Market—Rouse believes additional opportunities exist for the company to increase its presence in the Capital Region.
“We’re not done growing here yet,” he says.
For LeBlanc’s, the sale comes with an emotional price. LeBlanc says it is difficult, especially for the younger generation in his family, four of whom are involved in the stores.
“Three of the four have already spoken to the Rouse company and are very interested in at least hearing what they have to say and exploring their options,” he says. “They all like the grocery business and that’s what makes it very hard.”
—Stephanie Riegel
