Re: Supervalue to sell Albertsons, 4 more grocery chains
On 2013-01-10 18:29:14 +0000, Janet Bostwick said:
> Associated Press
> Posted on January 10, 2013 at 10:03 AM
> Updated today at 10:09 AM
> NEW YORK — Supervalu Inc. says it reached a deal to sell five of its
> biggest grocery chains — Albertsons, Acme, Jewel-Osco, Shaw’s and Star
> Market — for $100 million in cash and more than $3 billion in debt.
> The sale to AB Acquisition, an investor group led by Cerberus Capital
> Management, will include 877 stores. Cerberus will also offer to buy
> up to 30 percent of the remaining Supervalu for $4 per share after the
> deal closes.
> The investor group will acquire the stores for $100 million in cash,
> and the new company will assume $3.2 billion in existing debt.
> Supervalu has struggled for years to turn around its business. The
> broader supermarket industry has been facing growing competition from
> big-box retailers such as Target, drug store chains and even dollar
> stores. While bigger chains such as Kroger Co. have adapted by
> tweaking store formats and building customer loyalty through discount
> programs and improved offerings, Supervalu has scrambled to keep pace.
> This summer, Supervalu fired its CEO and tapped Chairman Wayne Sales
> to lead a turnaround. The company said at the time that it was
> reviewing its options, such as putting itself up for sale.
> Following the closing of the deal, Supervalu will consist of a food
> wholesaler, Save-A-Lot, and regional chains Cub, Farm Fresh, Shoppers,
> Shop ‘n Save and Hornbacher’s. The company, based in Eden Prairie,
> Minn., is expected to generate annual revenue of more than $17
> billion, down from $35 billion. Supervalu said it will continue to
> work on cutting costs and fixing its business.
> Supervalu said grocery retail veteran Sam Duncan will replace Sales
> after the deal closes.
> Its shares were up 15 percent at $3.51.
I knew the Chinese would eventually buy up our supermarkets. I knew it!