Don Quijote’s operator, Pan Pacific International Holding (PPIH), is acquiring South Californian supermarket chain Gelson’s Market.

The acquisition is part of Don Quijote’s plan to strengthen its international presence and boost its Japanese product export. The deal, which the value has yet been disclosed, is expected to be finalised in the second quarter of this year.

“PPIH leadership has visited every one of our locations and has been incredibly complimentary of our stores and teams, as well as our customer service philosophy,” said Rob McDougall, president and CEO of Gelson’s.

Acquired by TPG Capital in 2014, Gelson’s Market now operates 27 upscale supermarkets across the US. The supermarket chain is known for its gourmet, organic fare and prepared food. Its sales last year are estimated to have reached US$872.3 million.

“We strongly respect Gelson’s brand and history of 70 years known as a premium supermarket chain in the US,” said Naoki Yoshida, president and CEO of PPIH.

“We have set our footprint in the state of California when we acquired Marukai Corporation in 2013, and we look forward to expanding our presence in California.”